Siliconware Precision Industries (SPIL) has dismissed rumors, saying it is not in talks for a share-swap merger with ChipMOS Technologies, King Yuan Electronics Company (KYEC) and Sigurd Microelectronics.

Rumors started to circulate following the publication of a Deutsche Bank report which discussed the impact of a potential share-swap merger between SPIL, ChipMOS, KYEC and Sigurd. The share-swap merger between these companies could be formed to dilute Advanced Semiconductor Engineering's (ASE) stake in SPIL, according to the rumors.

"There has yet been any share swap arrangements with ChipMOS, King Yuan and Sigurd till this date, any such relevant information is purely a conjecture," SPIL said in a statement.

SPIL suggested previously that as high as 85% of its customers overlap ASE's and therefore, ASE's investment in SPIL is unlikely to create a synergy. SPIL also questions whether ASE will seek to get involved in its operations after holding a major stake in the company.

ASE has disclosed it has successfully purchased a total of about 1.147 billion units of SPIL common shares and ADRs representing approximately 36.83% of the issued and outstanding share capital of SPIL.