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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 SOURCESJapantimes.co.jp, Engadget.com

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