DRAM Chip Manufacturer Files for bankruptcy
Elpida, Japans’s only manufacturer of DRAM memory chips is bankrupt. Elpida filed for bankruptcy on Monday February 27. Elpida claims losses of $5.5B and is unable to continue trading. Elpida had been struggling for some time in a market dominated by South Korean chip makers able to undercut prices, even a Japanese government emergency loan package from the Development Bank of Japan in 2009 failed to keep Elpida afloat.
Bankrupt Chipmaker President Yukio Sakamoto Stated:
Yukio Sakamoto, president of Elpida told news services the strong Yen was partly to blaim, coupled with offers from potential partners falling through.
“We have lost our competitive edge completely against South Korean companies as the yen has strengthened against the Won, our efforts as a single company alone cannot make up for the steep surge in the value of the Yen over the past year.”
“The company had been pushed into bankruptcy when offers from potential partners fell through. We had been expecting various offers by today but what we got was not concrete.”