Report: Toshiba unlikely to back Elpida

SAN FRANCISCO—Toshiba Corp. President Norio Sasaki said his firm has held talks with various parties about providing financial support for fellow Japanese chip maker Elpida Memory Inc., but is unlikely to invest in the firm, according to a report by the Reuters news service.

Sasaki cited Elpida's weak operating condition for the hesitancy, according to the report.

In recent days, speculation from, among others DRAMexchange, a market research division of TrendForce Corp., has held that Toshiba might be troubled Elpida's "white knight." Elpida is reportedly about $6.26 billion in debt, including about $485 million in debt to the Japanese government, which has been pushing for Toshiba to take a stake in the memory chip firm, according to DRAMexchange.

According to the Reuters report, Japan's Yomiuri newspaper reported Thursday that Elpida requested $500 million in financial aid from roughly 10 customers in the U.S., China and Taiwan. The newspaper also reported that Elpida was considering seeking help from Toshiba, according to the Reuters report.

Report: Toshiba unlikely to back Elpida