Japanese chipmaker Elpida files for bankruptcy

Feb 27, 2012 By YURI KAGEYAMA , AP Business Writer
Japanese computer chipmaker Elpida Memory, Inc. President Yukio Sakamoto, left, bows during a press conference in Tokyo Monday, Feb. 27, 2012. Elpida filed for bankruptcy Monday after amassing debts from nose-diving prices, longtime competition from Samsung and the flooding in Thailand last year that stagnated demand. (AP Photo/Shizuo Kambayashi)

(AP) -- Computer chipmaker Elpida Memory Inc. filed for Japan's largest manufacturing bankruptcy Monday after amassing debts from nose-diving prices, competition from Samsung and flooding in Thailand last year that stifled demand.

Elpida, the only manufacturer in Japan to specialize in used in mobile phones and computers, reported debt of 448 billion yen ($5.5 billion) in filing for bankruptcy at on Monday.

That was the largest ever for a bankruptcy in Japan in the manufacturing field, according to Teikoku Databank, which compiles such information.

Elpida, set up in 1999 as a joint venture between Japanese electronics companies NEC Corp. and Hitachi Ltd., has been struggling for years to close the gap with rival . of South Korea.

The Tokyo-based company, which employs more than 3,000 people, said its business was hit when DRAM prices declined from about 2007, and got worse with the global downturn.

The surging yen also came as a blow as well as intense competition, it said.

Elpida said the flooding in Thailand last year battered DRAM demand, furthering hurting its operations. Global hard-drive production was disrupted by the floods as Thailand is a major production base for hard-drive makers.

"We have concluded that, if we continue the business by ourselves, we will face cash shortage soon," the company said.

In 2009, Elpida got government emergency aid totaling 30 billion yen ($375 million) in investments through the government-owned Development Bank of Japan. Other have pulled out of the DRAM business.

Explore further: Huawei reports 2014 profit up 33 percent

0 shares

Related Stories

Elpida to buy Powerchip's DRAM operations: report

Jan 31, 2011

Japan's leading chip maker Elpida Memory will take over the DRAM operations of Taiwan's Powerchip Technology in a bid to increase competitiveness amid falling prices, the Nikkei said Monday.

Elpida raises $145 million in Taiwan listing

Feb 24, 2011

(AP) -- Elpida Memory Inc. said Thursday it has raised 4.2 billion New Taiwan dollars ($145 million) in a secondary listing on the Taiwan Stock Exchange as the Japanese memory chip maker seeks alliances amid fierce competition.

Korean DRAM finds itself shut out of Japan

Jan 27, 2006

Japan may claim that the countervailing duty it slaps against Korean DRAM chip maker Hynix from today is just a protest against unfair trade practices and to curb dumping, but there's a widespread belief that the country ...

Elpida Memory Expands Semiconductor Production Facilities

Jun 14, 2004

Construction Begins on Second 300 mm Fabrication Plant and First 300 mm Fab Set to Boost Mass Production Hiroshima, June 10, 2004 - Elpida Memory, Inc (Elpida), Japan's leading global supplier of Dynamic Random Access Memor ...

Taiwan's TMC to team up with Elpida of Japan

Apr 01, 2009

Taiwan Memory Company (TMC), a new government-backed firm set up to consolidate the island's memory-chip industry, said Wednesday it will form a partnership with Japan's Elpida Memory Inc.

Recommended for you

Huawei reports 2014 profit up 33 percent

2 hours ago

Huawei Technologies Ltd., one of the world's biggest makers of telecommunications equipment, said Tuesday its 2014 profit rose 33 percent, helped by strong sales of smartphones.

Tesla shares jump on Musk 'tease' in tweet

15 hours ago

Tesla Motors shares jumped Monday after co-founder Elon Musk tweeted that the company would unveil as "major" new product line next month, leaving analysts guessing.

Amazon unveils move in local services

21 hours ago

US online giant Amazon said Monday it was launching a services marketplace offering to connect consumers with businesses offering anything from home improvement to piano lessons.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

plasma_guy
5 / 5 (1) Feb 28, 2012
Micron may not be able to get the DRAM market share that was Elpida's, as its 3x nm technology still lags behind Samsung and Hynix, who are at 2x nm.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.