DRAM Elpida Wants Bankruptcy Protection

DRAM Elpida Wants Bankruptcy Protection Elpida has an uncertain future. Company's shares fell 98 percent (250-5 yen) after the signing of the memory is bankrupt. According to the Stock Exchange Tokyo Stock Exchange, Elipda will be abolished on March 28.


On Monday, Elpida seek bankruptcy protection because they can not pay a debt of 448 million yen ($ 5.6 million). It is unclear whether the Japanese government intervened to help save the company, as it has done with other technology companies with problems. For now, private rescue seems unlikely because Elpida has been exploring the possibility of acquisition or partner for a while without success.

Currently there is no incentive for anyone to save Elipda. Unlike NAND, DRAM business is really slow. We have seen prices fall by 40 percent last year, which means that the profit margin is very narrow. Combine with falling prices and lower demand are looking for in a bad situation.

Unfortunately the company is likely to go bankrupt, because it has a reputation for producing quality parts in the past. Even one case six months ago, where some vendors are selling counterfeit DRAM Elipda relabeled using parts from Samsung. Elpida may not be the founder of the company's latest DRAM, but this is just another case in mature markets, it will gradually reduce the number of competitors.

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