Japanese computer memory maker Elpida Memory has decided to take control of its joint venture with Powerchip Semiconductor by lifting its stake to 52 percent from 48.8 percent, a newspaper said. Cash-strapped Elpida, the world's No 3 maker of dynamic random access memory, will spend about 4 billion yen ($42 million) to raise its stake in Rexchip Electronics Corp, the Nikkei business daily said on Thursday.
Powerchip said it will hold a news conference at 0800 GMT, without elaborating on what the briefing would be about. Elpida declined to comment. Elpida and Powerchip have been in talks about Elpida taking control of the DRAM production venture in January-March, in an effort to pool resources as both bleed losses amid sliding DRAM prices.
Making Rexchip a consolidated subsidiary will allow Elpida to include Rexchip among its net assets and help it clear a net asset covenant with Elpida's creditors. If Elpida's net assets fall below 75 percent of their value in the previous year at end-March, its creditors have the right to demand accelerated repayment of loans totalling 100 billion yen.