Powerchip Technology has reportedly claimed that it has preferential subscription rights to purchase a 70% stake which Elpida Memory held in Rexchip Electronics although the Japan-based DRAM maker has decided to hand over its management to Micron Technology, according to industry sources.

Rexchip was a joint venture set up by Powerchip and Elpida in 2006 with each party holding a 50% share. However, Powerchip has transferred part of its holdings in Rexchip to Elpida in past years due to financial difficulties, reducing its stake in Rexchip to 21% currently.

In addition to the preferential subscription rights, Powerchip is also reportedly entitled to solicit investment from a third party for the purchase of Rexchip's shares from Elpida if the Japan-based memory maker is to give up its holdings, the sources added.

Given its financial restraint currently, Powerchip is reportedly seeking equity investment from SK Hynix for taking up Rexchip's shares from Elpida, the sources revealed.

To optimize its stake in Rexchip, Powerchip is also likely to offer a proposal to Micron asking the US-based memory company to also purchase its P3 12-inch wafer plant located in Hsinchu in addition to taking up a 70% share in Rexchip, said the sources.

Powerchip dismissed all market speculations on its intention to solicit investment from Hynix or plans to ask Micron to buy its P3 fab.

However, it will be no surprise to the industry if Hynix does take up Rexchip's shares given Hynix concerns over its dwindling share in the global DRAM market after the realization of the Micron-Elpida deal, indicated the sources.

Hynix, the world's second largest DRAM vendor, currently enjoys a market share that is 10pp higher than either Micron or Elpida. But a Micron-Elpida merger would give the new DRAM company a market share higher than that of Hynix, the sources commented. Additionally, the new DRAM company would also pose a threat to Hynix's market leadership in the mobile DRAM sector.