While this rumor is starting, I think it's one that should be taken with a large block of salt. Digitimes doesn't have the best record for reporting leaked rumors (remember the color Kindle?), and that suggests that they don't have the best contacts with gadget and component manufacturers.
Without people who will talk to them about inside details, it's going to be rather hard to make accurate predictions about the future of the ereader market. Also, another prediction Digitimes made this week was that the market would peak at 60 million units in 2015. If both predictions are true then we're going to see a startling reversal, and I just don't see that happening.
On the other hand, I sent an email to E-ink yesterday and gave them a chance to issue a rebuttal. They didn't respond, so this rumor could be somewhat true.