Dec 22 Japanese chipmaker Elpida Memory Inc may start talks next month with Taiwanese rival Nanya Technology Corp as a preliminary step towards a potential integration, the Nikkei business daily said.
Elpida and Nanya would discuss proposals including the creation of a holding company under which the two DRAM makers would operate, the paper said.
DRAM, or Dynamic Random Access Memory chips, are used in personal computers and similar devices.
The arrangement would involve introducing the Japanese firm's technologies at Nanya's production facilities.
The two companies would control 19.3 percent of the market, the daily said.
The economic slump in Europe and elsewhere has slackened demand for personal computers, impacting DRAM demand. Prices for DDR3 DRAMs have plunged about 80 percent since April 2010, the business daily said.
Elpida posted a 56.8 billion yen ($728.44 million) loss for April-September while Nanya has posted losses for seven straight quarter, the paper added.