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Elpida may further raise its stake in Rexchip Electronics

Elpida Memory Inc, Japan’s biggest computer memory chip maker, said it might raise its stake in its venture with Taiwan’s Powerchip Semiconductor Corp (力晶半導體) to more than 70 percent by Dec. 31.

The Tokyo-based company on Tuesday increased its holding in Rexchip Electronics Corp (瑞晶電子) to 64 percent, from 52 percent, Elpida spokesman Hiroshi Tsuboi said by telephone.

Powerchip gave Elpida 350 million shares worth more than ¥10 billion (US$111 million) to repay an earlier loan from the Japanese chipmaker, lowering its stake to about 34 percent, Tsuboi said.

Elpida is strengthening its ownership of the Taichung-based venture to secure chip supply as improving demand boosts prices.

Rexchip became profitable on an operating basis in August, helped by the rising prices and a switch to production of smaller, more cost-efficient chips, Elpida said last week.

The Japanese company plans to increase its stake in Rexchip to 71 percent by the end of the year, Nikkei English News reported earlier, without citing anyone.

Profitability at Rexchip was helped by a switch to 65-nanometer chip production, from 70-nanometer, Elpida said last week.

The price of benchmark dynamic random access memory (DRAM) chips more than tripled this year, according to DrameXchange Technology Inc, operator of Asia’s biggest spot market for semiconductors. The price slumped 62 percent last year.

Elpida shares rose 1.8 percent to ¥1,242 on the Tokyo Stock Exchange, while Powerchip’s fell 0.87 percent to NT$3.4 on the Taiwan Stock Exchange.
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