Elite Semiconductor Memory Technology (ESMT), which mainly designs and supplies specialty DRAM (SDRAM) chips used in LCD TVs, mobile phones and other consumer products, is looking to make an equity investment in Eon Silicon Solution, a fabless IC firm specializing in NOR flash and multi-chip package (MCP) memory solutions, according to industry sources.

The planned stake investment in Eon by ESMT may lead to a merger of the two companies, the sources indicated.

But both ESMT and Eon have claimed that they were not aware of such speculation.

Niche-market DRAM products accounted for 80-90% of ESMT's revenues at present. Merging with Eon would enhance ESMT's NOR and MCP product lines, which perform relatively poorly compared to SDRAM, the sources pointed out.