DRAM maker Rexchip Electronics will be able to repay its NT$2.1 billion (US$71.3 million) debt due in September 2012, as Elpida Memory has made advance payments to the Taiwan-based subsidiary for the purchase of memory chips, according to industry sources.

Rexchip managed to pay off a NT$2.6 billion debt in August also with the prepayment made for the company's DRAM chips by Elpida, the sources indicated. Despite carrying a heavy debt load itself, Epida tends to help the produciton subsidiary stay in business, the sources observed.

Rexchip remarked previously that the firm had generated positive cash flow from operations, and expected to repay all its loans due in 2012.

In addition, despite recent speculation that Micron Technology's impending purchase of Elpida might take longer than expected, sources at Taiwan-based memory makers believe that there is little chance that Elpida's debt creditors can block the company's sale to Micron, and the acquisition is expected to complete in 2013 as scheduled.

Micron in July unveiled plans to acquire Elpida, with the transaction to close in the first half of 2013. Micron also announced that it reached a separate agreement with Powerchip Technology and certain of its affiliates to acquire the group's 24% stake in Rexchip for approximately NT$10 billion. Micron's purchase of Powerchip's Rexchip shares will occur upon close of the Elpida transaction.