updated 12:05 pm EST, Mon February 27, 2012
Elpida files for bankruptcy protection in Japan
Despite recent efforts to team with Toshiba or partner with Micron, Japanese computer chipmaker has filed for bankruptcy protection on Monday, The Register reported. The DRAM maker has debts that add up to 448 million yen ($5.6 million). In a statement, the company revealed its actions were made necessary by the falling prices of DRAM products due to competition and record yen values against the US dollar.
An additional factor were last year's Thailand floods. The company didn't wish to continue its business on its own, fearing an imminent cash shortage.
Elpida was the first Japanese company to get the government's financial aid in 2009, getting 30 billion yen (nearly $373 million) from the Development Bank of Japan and borrowing at other banks.
The chipmaker is a result of the merging of Hitachi and NEC's merging their DRAM operations in 1999. It began being traded on the Tokyo Stock Exchange in 2004 after taking over Mitsubishi's DRAM division in 2003.