Motech Industries is in talks over the potential purchase of rival Taiwanese PV manufacturer Neo Solar Power Corporation, according to media reports.

According to Taiwan Economic News, if the acquisition gets the go ahead, Motech will be able to up its capacity to 3GW. Currently, the company has an annual capacity of 1.5GW which is expected to increase to 1.6GW by the end of the year. Neo Solar, meanwhile, has an annual capacity of 1.3GW.

If merged, the new entity will hold a global market share of 7% which, the news site claims, will make it the third largest in the world, after US-based First Solar and China-based JA Solar.

In response to the acquisition rumours, Motech has published a press release stating that the merger is “speculative” and that it has “no comment on this matter”.

Whilst these rumours have been circulating, Neo Solar today announced revenues of NT$777 million (US$26.5 million) for the month of October. Although this figure is up slightly from the September figure of NT$764 million, compared with the same month one year ago, it is down by 34%.

Its third quarter results which were released at the end of October also showed this downward trend with revenues falling to NT$2,962 million. The company also reported a net loss of NT$2,746 million for the quarter.