Electronic giants Fujitsu and Toshiba are considering a merger for their mobile phone operations that would see the two become the second largest mobile phone business in Japan.

Currently Fujitsu is ranked third in Japan and Toshiba eighth but a merger would see their market share jump to 18.7 per cent, just 7.5 per cent behind national industry leader Sharp.

Globally, Japanese mobile manufacturers struggle to compete with the likes of RIM, Apple, Nokia and HTC though. The merger would mean that Fujitsu and Toshiba would still have less than a 1 per cent share.

Fujitsu and Toshiba are both to officially state that they are in talks with one another, but if reports prove to be accurate then this could be a partnership that could in turn lead to a full merger of the two Japanese companies.