China Mobile will make an equity investment in MediaTek to form a strategic alliance with the Taiwan-based IC design house, according to a recent Economic Daily News (EDN) report.

China Mobile's investment in MediaTek will be confirmed by the end of 2015, when Taiwan's Ministry of Economic Affairs (MOEA) relaxes its ban on local chipmakers drawing equity investments from China-based companies, the report said, without citing its source.

In response, MediaTek said that the company was not the source of the EDN report, adding it is purely speculation.

Taiwan's MOEA previously stated that China-based companies are still prohibited from committing equity investments in local IC design firms. The MOEA added it is carefully evaluating the possibility of relaxing related investment rules.