According to a wire report by Taiwan's Central News Agency (CNA), the Chinese want Micron to transfer its DRAM technology in exchange for a stake in the fab.

The deal appears to have been simmering for some time. In December Micron said it would buy Inotera's remaining shares. Its other major shareholders also include Taiwan's Formosa Group companies such as Nanya Technology. Nanya agreed and Micron said it expects to complete its Inotera takeover in the middle of 2016.

Both Inotera and Nanya use Micron's designs to make DRAM chips.

China has been investing like a mad thing to get access to the chipmaking and DRAM business. Having its own fab, with Micron tech would go a long way towards doing that. Micron on the other hand has the advantage that it becomes much bigger and becomes China's best friend.