Elpida shares surge on report of possible Toshiba

TOKYO, JAPAN: Shares of Elpida Memory rose more than 7 per cent in early trade on Wednesday after the Taiwanese trade publication DigiTimes said the troubled chipmaker may merge with Toshiba.

The report is the latest in a series about possible survival plans for Japan's last remaining player in the dynamic random-access memory (DRAM) market, as it battles tumbling prices and loss of market share to South Korea's better-funded giants.

Japan's Asahi newspaper said last month Elpida was considering asking to delay paying back 30 billion yen ($391 million) in public funds after its earnings were hit by the European debt crisis.

A separate report said Elpida would start tie-up talks with Taiwan's Nanya Technology Corp with a view to a possible merger.

Toshiba shares fell 1 per cent in early trade.

An Elpida spokesman said he was aware of the DigiTimes report, but declined to comment. No one at Toshiba was immediately available for comment.