Chipmaker Elpida Memory Inc. is thinking of forming a capital and business alliance with Taiwanese semiconductor maker Nanya Technology Corp., sources close to the matter said Thursday.

Elpida aims to take advantage of the tieup to improve its business performance, which has deteriorated from the strong yen and falling prices for its mainstay dynamic random access memory chips, the sources said.

But it remains uncertain whether such an alliance will form because Elpida has sued Nanya in Taiwan and the United States for infringing on its DRAM patents.

Under the plan, Elpida will consider licensing Nanya to manufacture Elpida products, while focusing on cutting-edge products at its plant in Hiroshima Prefecture, the sources said.

In the April-September half, Elpida posted a group net loss of ¥56.76 billion, its biggest for the half-year period.