Powerchip Technology originally claimed its preemptive rights to acquire Japan-based Elpida Memory's 70% stake in Rexchip Electronics, a joint venture between Powerchip and Elpida, following Micron Technology's acquisition of Elpida, but has said it is willing to drop the claim and additionally sell its stake of over 20% in Rexchip to Micron, paving the way for Micron to merge with Elpida, according to industry sources.

In response, Powerchip did not comment but stressed that it will never play a role in blocking Micron's merger with Elpida.

According to the joint-venture contract signed by Powerchip and Elpida, if either side gives up its stake in Rexchip, the other side can take over the stake with a preemptive right to purchase, even with third parties providing financial help, the sources pointed out. Because Powerchip's claim becomes an obstacle for the acquisition of Elpida, Micron executives have negotiated with Powerchip a few times in order to solve the problem, the sources indicated.

Although Powerchip is willing to sell its stake in Rexchip to Micron, both sides have disagreed on a price, with Micron aiming to purchase at Rexchip's current net asset value per share of NT$12 (US$0.40) and Powerchip asking for NT$15-16 per share, the sources noted.

Rexchip is essential to Micron's acquisition of Elpida because Rexchip has a 12-inch fab with a monthly production capacity of 80,000 wafers and relatively advanced processes, the sources said.