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Elpida Memory Inc is considering buying shares in Taiwanese DRAM makers to bolster its position.

An attempt to weld several small Taiwanese DRAM makers together into a single entity using government money fell apart earlier this year. Taiwan Innovation Memory Co., having been rejected as a suitable case for government investment as a DRAM company, is trying to reinvent itself as a NAND flash supplier.

This has left Powerchip Technology , ProMOS Technologies Inc. and Winbond Electronics Corp. as being essentially too small to keep up in the capital intensive DRAM business and among possible targets for Elpida.

Elpida has outsourcing contracts with these companies and a joint venture with Powerchip called Rexchip