VIA Technologies, commenting about a recent report stated that China-based telecom carrier Datang Telecom Technology (DTT) has recently discussed with VIA chairman Cher Wang the acquisition of VIA, said the report is completely untrue.

The report has citied chairman of DTT, Zhen Caiji (transliterated from Chinese), who said that he has talked with Wang about the acquisition of VIA and the two firms are currently aggressively trying to solve some issues over the related technologies.

However, some market watchers believe the acquisition is unlikely to occur since the case involves several complicated policies between China and Taiwan governments. Therefore, DTT is likely to form a cooperation with VIA instead of acquiring it.

However, some CPU players believe that selling VIA may be a good opportunity for Wang to be rid of the trouble to allow her to put more focus on HTC's smartphone business.

VIA has recently announced its revenues of NT$267 million (US$8.85 million) for December of 2011, down 22.07% on month and 30.5% on year, with annual revenues of 2011 to reach NT$4.25 billion, down 15.77% on year.