Toshiba is being discussed as a potential purchaser of Elpida Memory, according to a report from DRAMexchange, a market research company.

The shortage of investments and a debt to the Japanese government could force Elpida be integrated by another Japanese chipmaker, Toshiba. According to note from DRAMexchange, Elpida has a total debt of about $6.26 billion and that about $485 million of that debt is held by the Japanese government and is due to be repaid by the end of April 2012.

The note added that Elpida had been seeking a renewed bail-out from the Japanese government but also of Toshiba taking over the DRAM vendor.

DRAMexchange said that the Japanese government is eager to help negotiate a partnership between Toshiba and Elpida in the belief that a converged DRAM and NAND flash memory strategy will better target tablet computers and solid-state disc drives. Rivals Samsung and Hynix have also parnered in the DRAm and flash memory segment.

The report also said that Elpida could ally Micron Technology. Such an alliance would help with DRAM and NAND flash manufacture by keeping costs down and help the companies break into the mobile DRAM market, DRAMexchange said.

Elpida's and Toshiba's executives have declined to comment on the rumored negotiations.