Assembling the file that I'll momentarily try to attach requires 6.5GB of memory on a x86_64 host using gas 2.23.2 and the assembler command /usr/lib64/gcc/x86_64-suse-linux/4.8/../../../../x86_64-suse-linux/bin/as -v -I . -I ../.. -I ../../src -I ../../src -I ../../utils -I ../../tests --64 -o mipproblem1.o mipproblem1.s That seems a little excessive for assembler memory usage.
Ok, the assembler file is 1GB in size and doesn't compress enough. It can be generated by compiling the testcase at gcc.gnu.org/PR58315 with GCC 4.8 and -O2 -g on x86_64. Or you can download it from http://gcc.opensuse.org/mipproblem1.s.bz2 (it should appear there in not too distant future)
According to as --statistics, 3.5G of that is in 28046869 fixups, most of which I would guess are in debug sections.