SK hynix Inc., formerly Hynix Semiconductor, submitted a proposal to bid for Elpida Memory, while Toshiba also considers invseting in the the Japanese chipmaker, which filed for bankruptcy protection last month.

The S. Korean semiconductor company will decide whether to make a final bid after due diligence, it said in a regulatory filing today. Toshiba also was considering a bid, a senior executive for the Tokyo-based company said today and reported by Bloomberg.

Korean industry watchers speculated the conglomerate could pool at least 1.5 trillion won (US$1.32 billion) in cash for the bidding. SK hynix is expected to invest around 4 trillion won this year to improve its facilities and overall competitiveness.

Bidders for Elpida?s assets may gain as much as 12 percent of the global market for dynamic random access memory, or DRAM, chips as the Tokyo-based company tries to revive itself after filing for bankruptcy with liabilities of 448 billion yen ($5.5 billion) on Feb. 27.

By acquiring Elpida, Hynix could narrow the gap with industry leader Samsung Electronics and fend off Micron Technology. At present, Samsung hold 44 percent of the world's memory chip market, with SK hynix trailing at 23 percent.

Elpida gained approval on March 23 for President Yukio Sakamoto to lead its revival plan after filing for Japan?s biggest bankruptcy in two years. The company plans to submit a restructuring plan by Aug. 21.

If Toshiba comes in and takes Elpida, they can be a serious competitor to Samsung and Hynix.

Micron has been also in talks with Elpida since the end of last year.