Digitimes is reporting that troubled memory maker Elpida may merge some business operations with Toshiba at the behest of the Japanese government.
Elpida Memory – which is Japan’s sole manufacturer of DRAM – apparently is in such dire financial straights that it cannot repay a business development loan from the Japanese government. In order to avoid potential bankruptcy, and to ensure that DRAM fabrication remains domestic, the Japanese government is pushing a merger of Toshiba and Elpida’s memory manufacturing operations.
“Toshiba could leverage Elpida’s mobile RAM technology and assets to accelerate and optimize the development of its flash memory products used in mobile devices,” Digitimes’ sources claimed.
Neither Toshiba nor Elpida representatives have commented publicly on integration rumors.