MediaTek and Richtek Technology have both denied speculation that the two fabless IC firms will merge.

Speculation circulated recently in Taiwan's IC design industry that analog IC supplier Richtek is MediaTek's next acquisition target, as the island's leading IC design company is looking to expand its business scope.

MediaTek recently announced that subsidiary MStar Semiconductor will acquire LCD driver IC specialist ILI Technology (Ilitek), with the deal scheduled to close in the second quarter of 2016.