SAN JOSE, Calif. -- The Institute of Computing Technology of Chinese Academy of Sciences is mulling plans to take a 20 percent stake in MIPS Technologies Inc., according to reports.
This has been reported by DigiTimes and Chinese news media. MIPS declined to comment on the reports.
''I can’t comment since it’s our corporate policy not to comment on industry rumors,'' according to a MIPS spokeswoman. ''I can say that ICT is a valuable customer and that we have a close relationship.''
The Chinese group, also called ICT, is developing its own processor. Loongson Technology Co. Ltd., which is funded by the group, is developing the processor.
The Loongson/Godson is based on the MIPS instruction set. Development started prior to 2002. MIPS Technologies (Sunnyvale, Calif.) announced in 2009 that the Institute of Computing Technology of the Chinese Academy of Sciences had licensed the MIPS32 and MIPS64 architectures to allow it to develop and commercialize its Loongson family of processors.
Loongson has garnered at least three netbook design wins in China, said Gary Mobley, an analyst with Benchmark Co. LLC.
And at least in the Chinese media, there have been some ''remarks'' that ICT is mulling plans to buy a stake in MIPS, Mobley said.
However, Mobley said that it is unlikely that ICT would invest in MIPS. ''I think that there is no more than a 10 percent chance'' that ICT would invest in MIPS via the equity markets, he said.
ICT could go out and buy MIPS' stock in the open market, but that would be ''difficult,'' he added. A 20 percent stake in MIPS could cost some $45 million, he added.