Toshiba Corp. has started talks with America Online Inc., the world's largest Internet service provider, on tieup possibilities with the new firm to be created through its merger with Time Warner Inc., industry sources said Tuesday.

Toshiba, a Time Warner ally, wants the new firm to provide it with broadband technology required for transmitting video via the Internet, the sources said.

In exchange, Toshiba is willing to transfer technology related to semiconductor chips and envisioned portable computer terminals that would feature displays on which users could surf the Web, they said.