Taipei  - Taiwan on Wednesday lent its support to the proposed merger of Japan's top producer of computer chips - Elpida Memory Inc - with three Taiwan firms, but said details are still being discussed.

Economics Minister Yin Chi-ming made the statement to the Central News Agency (CNA) after Japanese press reported that Elpida and the three Taiwan chip makers would clink the deal Wednesday.

The tie-up would be with Taiwan's Powerchip, Rexchip and ProMOS. If it materializes, it would create the world's second-largest chip maker after South Korea's Samsung Electronics Co.

Elpida President Yukio Sakamoto called on Yin at the Economics Ministry early Wednesday. Yin said Sakamoto said Elpida was willing to comply with Taiwan's wish for upgrading its semiconductor industry.

"Therefore, I am optimistic about the (Taiwan) government's playing the leading role in the integration," Yin said. He said further plans for the integration would be disclosed at the end of February.

Regarding news reports that the Taiwan government may subsidize Elpida-Taiwan tie-up, Yin said Taiwan might invest a maximum 70 billion Taiwan dollars (two billion US dollars) in the merger, or may offer no funds at all.

Elpida is the world's third-largest chip maker. It has been mulling a merger with the three Taiwan firms for a long time. (dpa)