The dark satanic rumour mill has been turning like crazy over rumors that MediaTek is mulling some form of collaboration including a merger with Nvidia.

The idea is that some sort of partnership would work well if they both expanded into the car-use market.

The report claimed that MediaTek wanted to expand its offerings to include high-priced and high-margin chip solutions for car-use applications. Apparently the smartphone-chip market is becoming too competitive.

Nvidia already supplies chips to car vendors such as Audi, Volkswagen and Skoda and its Tegra X1, should see it get a foot in the door of the smart car industry.

However consolidation of tech companies appears to be happening everywhere else. Rumours have also implied that Nvidia is also the subject of a few buyout offers and so Mediatek might need to get in line.