Microchip (MCHP +0.8%) confirms it has held talks with CSR (CSRE +35.3%) about "ways in which [Microchip's] relationship with CSR could be advanced, including possibly an acquisition of CSR." However, the talks are said to be "at a very preliminary stage."
Microchip, whose microcontrollers are sometimes found within products that also contain CSR's Bluetooth, GPS, or A/V chips, notes it has partnered with CSR in the past, with a Bluetooth module initiative being one example.
Back in May, Microchip announced it's buying Taiwanese Bluetooth chipmaker ISSC for $294.3M. The company has also snapped up analog chipmaker Supertex, as it takes part in a broader chip industry M&A wave.
Earlier: CSR turns down Microchip's buyout offer