TweakTown
Tech content trusted by users in North America and around the world
5,676 Reviews & Articles | 36,072 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

Elpida files for bankruptcy protection, has debts of $5.5 billion

Elpida files for bankruptcy protection, Government-backed loans weren't enough to keep them alive

| Business, Financial & Legal News | Posted: Feb 28, 2012 4:20 am

Semiconductor maker, Elpida Memory Inc. have filed for bankruptcy protection according to the Japan Times. After receiving some Government-backed funding, with efforts of a rebuild failing, they've given up. Japan's sole manufacturer of DRAM had liabilities of $5.5 billion.

 

TweakTown image news/2/2/22794_07_elpida_files_for_bankruptcy_protection_has_debts_of_5_5_billion.jpg

 

President of the company, Yukio Sakamoto is said to resign because of this, as they file for protection with the Tokyo District Court. Elpida was founded in 1999 as NEC Hitachi Memory Inc. and have since produced DRAM products since 2000. The company also founded three wholly-owned subsidiaries, Tera Probe, which conducted wafter probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and finally, Rexchip Electronics Corp, which handled the front-end.

 

A fall in prices and the global recession of 2006 is said to have pushed them up against the wall, where they required a Government-backed loan of around $372 million. This injection of cash was used for investment and research and development, but with the strong Yen and the Thailand flooding last year, they were forced to come clean about their finances, and now the dirty laundry has aired.

NEWS SOURCES
Japantimes.co.jp, Engadget.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below