The cost of climbing the learning curve to ever higher levels of integration of memory chips is forcing Siemens AG to look beyond its joint venture with IBM for development of 64M-bit parts, and according to the Financial Times, it is in talks with SGS-Thomson Microelectronics NV that could lead to a merger of the Franco-Italian company with the Siemens semiconductor subsidiary. The possibility of the Philips NV chip interests being included is also being canvassed. SGS-Thomson says it is talking with several potential partners, and describes the idea of a full merger with Siemens as pure speculation, an expression, as IBM has taught us, simply means could happen no comment.