TAIPEI, TAIWAN: In a significant move, DRAM company Powerchip Semiconductor Corporation (PSC) is lining up measures to buy back a part of the Rexchip Electronics shares it had earlier sold to Elpida Memory, based in Japan.

The move comes close on the heels of Rexchip reporting that it is coming back to profits. In such a scenario, PSC thinks that it would be able to recover its lost shares through a buy back.

In the meantime, Elpida plans to hike its pie in Rexchip to 71 per cent. This is most likely to happen by the end of the current year. Elpida has pushed up stake in Rexchip to 64 earlier itself. It now looks at pocketing more.

The Japanese company had bought out 350 million more Rexchip shares from PSC as partial repayment of a short-term loan lent to its Taiwan-based partner. With now PSC looking to recover lost shares,  Elpida is eyeing to add more of its strength in Rexchip.

Industry analysts, in the meantime, believe that PSC could be reluctant to give up more Rexchip shares, as profitability at Rexchip could help PSC return to profitability. Rexchip had posted profits in September and now PSC will look at talking t out with Elpida on the Japanese major’s holding in Rexchip.