Feeds

Fallen DRAMurai warrior Elpida files for bankruptcy protection

Japanese chipmaker finds itself in a $5.6bn hole

High performance access to file storage

Japanese chipmaker Elpida Memory filed for bankruptcy protection today after failing to find anyone willing to save it.

Despite rumours that a number of suitors were interested in slurping a stake in the DRAM manufacturer, including Micron Technology and Toshiba, Elpida has had to apply to restructure its business under protection as it staggers under debts of ¥448bn ($5.6bn).

"The circumstances around our company turned from bad to worse due to factors such as the record-breaking strong yen against the US dollar, and the steep fall of the price of DRAM products by fiercer competition in the DRAM industry," Elpida said in a canned statement.

"Within such continuing harsh management environment, an additional negative factor, which is a stagnation of demand for DRAM due to the great flood in Thailand in 2011, has arisen. Based on the background mentioned above, we have concluded that if we continue the business by ourselves, we will face cash shortage soon."

Elpida was formed in 1999 when the DRAM operations of NEC and Hitachi merged, and it listed on the Tokyo Stock Exchange in 2004 after it slurped the DRAM division of Mitsubishi the year before.

The Japanese government stepped in to help the firm in 2009 and made Elpida the first company to trouser cash from a government financial aid programme. The firm got ¥30bn in emergency investment from the state-backed Development Bank of Japan and took out some huge loans with some other banks, the Japan Times said.

Unfortunately for Elpida, the DRAM market didn't get any better in the last four years as prices plummeted and the yen got stronger.

The fat lady isn't singing yet for Elpida - it could still get itself a white knight that might invest in or takeover the biz, but in the meantime its customers are likely to defect to Taiwanese or South Korean chipmakers like Nanya or Samsung.

Samsung has been gobbling up the chip market as Japanese firms run into trouble, not least because it boosted its DRAM business with quick diversification into the NAND chips used in smartphones, fondleslabs and cameras. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.