Toshiba Corp (6502.T) has decided to join the bidding race to sponsor Elpida Memory Inc's 6665.T turnaround from bankruptcy, setting stage for a battle with U.S.-based Micron Technology (MU.O).

Toshiba, which believes adding Elpida's cell-phone-use DRAMs to its offerings is crucial for its survival in the chip industry, might seek financial assistance from the government-backed Enterprise Turnaround Initiative Corp of Japan.

Elpida Memory, will soon stop accepting applications for the first round of bidding. After the second round at the end of April, a single sponsor will be selected in early May.

Though other firms such as Intel Corp (INTC.O) may join the fray, Toshiba and Micron are likely to become leading contenders.