java parameterized generic static factory

Is it possible in Java to create a static factory method/class that uses an interface as the parameterized type and return an implementing class of this given interface?

Although my knowledge of Generics is limited, here is what I want to do:

// define a base interface:
public interface Tool {
    // nothing here, just the interface.
}

// define a parser tool:
public interface Parser extends Tool {
    public ParseObject parse(InputStream is); 
}

// define a converter tool:
public interface Converter extends Tool {
    public ConvertObject convert(InputStream is, OutputStream os);
}

// define a factory class
public class ToolFactory {
    public static <? extends Tool> getInstance(<? extends Tool> tool) {
       // what I want this method to return is:
       // - ParserImpl class, or
       // - ConverterImpl class
       // according to the specified interface.
       if (tool instanceof Parser) {
          return new ParserImpl();
       }
       if (tool instanceof Converter) {
          return new ConverterImpl();
       }
    }
}

I want to restrict the client code to only insert an interface 'type' into the getInstance() method that extends from the Tool interface I specified. This way I know for sure that the tooltype that is inserted is a legitimate tool.

Client code should look like this:

public class App {
   public void main(String[] args) {

      Parser parser = null;
      Converter converter = null;

      // ask for a parser implementation (without knowing the implementing class)
      parser = ToolFactory.getInstance(parser);

      // ask for a converter implementation
      converter = ToolFactory.getInstance(converter);

      parser.parse(...);
      converter.convert(... , ...);
   }
}

The factory should switch on the type of the interface (careless if it's null or not), defined before it is asked from the factory. I know this is not going to work the way I wrote this, but I hope one of the readers knows what I want to accomplish.

The return type of the getInstance method is the same as the incoming parameter, so when a Parser interface is passed, it also returns a Parser p = new ParserImpl(); return p;

Thanks in advance for helping me.

A couple of things:

Your factory should almost certainly take a class to instantiate, rather than a Tool object. Having someone create a Parser to pass into your method in order to get a Parser is a bit chicken-and-egg.
I don't know if you're allowed to have generic parameters for methods that are wildcards; I presume not since this would be nonsensical and pointless. When you parameterise a method, you need to give the generic parameter a name so that you can refer to it later on.

Putting these together, your factory method might look more like this:

public static <T extends Tool> T getInstance(Class<T> toolClass) {
   if (Parser.class.isAssignableFrom(toolClass) {
      return new ParserImpl();
   }
   else if (Converter.class.isAssignableFrom(toolClass) {
      return new ConverterImpl();
   }

   // You'll always need to have a catch-all case else the compiler will complain
   throw new IllegalArgumentException("Unknown class: " + toolClass.getName());
}

If you want to restrict the type of toolClass to be an interface, you can't do this at compile-time, but you can of course introduce a runtime check toolClass.isInterface().

By the way, this static hardcoded switching isn't very nice in general. To my mind, it would be nicer to put the class-to-constructor relationship in a Map and look up the construction process dynamically. Maybe even store the value as a Callable<? extends Tool> and add a protected method allowing other classes to register mappings.

That's not to say that your current version doesn't work, just that it doesn't scale very well, and right now I don't think it's doing much to justify having a separate factory rather than the caller simply invoking toolClass.newInstance() themselves.