Elpida Memory president and CEO Yukio Sakamoto has admitted that the company is approaching Taiwan-based Powerchip Technology and ProMOS Technologies with a view of forming a competitive team, but nothing has been decided. Sakamoto expects some form of merger among the companies to be carried out as early as possible.

Elpida is looking to merge with Powerchip and ProMOS through a share swap, and to eventually integrate the resources of the companies with those of subsidiary Rexchip Electronics, Sakamoto said. The Japan-Taiwan alliance would be able to grab a more than 40% share of the global DRAM market, Sakamoto noted.

Sakamoto also suggested that Powerchip's and ProMOS's creditor banks agree to offer a pardon on their debts, allowing the companies to finalize a business integration with his company.

Both Powerchip and ProMOS, however, have kept silent on the issue.

In other news. Elpida will start selling its stock in Taiwan on February 25, through an issuance of Taiwan depositary receipts.