Elpida files for bankruptcy protection

The inevitable has happened for Japanese memory maker Elpida, with the company filing for bankruptcy protection due to its whopping 448 billion yen ($5.55 billion) in debt.

The inevitable has happened for Japanese memory maker Elpida, with the company filing for bankruptcy protection due to its whopping 448 billion yen ($5.55 billion) in debt.

 
The DRAM maker has struggled to survive in the face of intense competition from rivals like Samsung, while other issues like a strong yen, low prices, and chip oversupply have also contributed to falling profits and rising debt.
 
Earlier this month Elpida indicated that the possibility of it going under was becoming a bigger concern, and now those fears have become a reality. Despite efforts to secure funding from investors, it appears that the company was unable to negotiate a deal.
 
 Elpida files for bankruptcy protection
 
The bankruptcy protection filing won't put an end to chip production immediately, but it does mean that it will lose many of its existing customers, further hammering in the nail in its coffin.
 
Elpida is the last DRAM maker in Japan, which means if it bites the dust Japan will have effectively lost the final ship in its memory armada. Trade Minister Yukio Edano said he hoped that DRAM production in Japan would continue, but it seems increasingly unlikely.
 
However, there is still the possibility that the Japanese government will intervene. It has expressed interest in taking on struggling chip businesses and bringing in GlobalFoundries to run them, an opportunity that could give Elpida another lease of life. 
 
Source: Reuters