A tie between Japanese computer chip maker Elpida Memory Inc. and Micron Technology could be big news and a solid choice for the Boise company, a semiconductor analyst says.

"I think it makes perfect sense," said Mike Howard, an analyst with IHS iSuppli and a former Micron employee. A Japanese newspaper has reported that Elpida is seeking a capital alliance with Micron.

Howard said Micron could see several benefits:

Æ The Japanse company is ahead of Micron in mobile DRAM chips, which are used in cell phone and tablets, both growth markets.

Æ If Micron takes on Elpida, it potentially keeps the Japanese company's intellectual property and patents out of the hands of the Chinese, who could be interested in Elpida.

Micron also is in a strong position to be a leader in consolidation that is expected to come to the semiconductor industry as chip prices remain low, Howard said. The company has low debt and about $2 billion in cash and short-term reserves.

Elpida has issued a statement saying it is discussing capital investments with customers and is talking with banks about refinancing to ensure the company's operation. Elpida said it wass not the source for the Japanese newspaper's story. Micron did not return a call seeking comment.

Bloomberg News contributed.