Elpida Memory Likely to Seek a Second Bailout

The struggling chip company is reportedly not able to repay a government loan in the amount of $386 million, which it received in June 2009, following the crash of investment bank Lehman Brothers in late 2008. Elpida received a total of more than $1 billion in supporting financing.

According to The Asahi Shimbun, Elpida is likely to be seeking a second bailout. The company's current cash resources barely cover the original loan amounts and a questionable world economy as well as deteriorating DRAM pricing may keep Elpida in the red and drain its cash reserves. There is already speculation that Elpida will be denied another bailout and there are talks that Elpida could be merging with Toshiba. Digitimes wrote that the Japanese government has an interest in keeping Elpida's DRAM technology alive and especially keep it as an asset of the country. As a part of Toshiba, Elpida could be contributing to faster Flash development, Digitimes said.

Samsung, already the world's dominating DRAM maker, would gain even more control of the market, if Elpida closes its doors.

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  • The government needs to bail me out. I could use a couple million.
    18
  • I don't agree with governments bailing out businesses that fail.

    I didn't want the government to bail out the car companies that produced cars that people didn't buy. Thats a part of business, when things go bad a new business will usually come about from the old one that failed. I'm sure if GM or Chrysler went under Ford or another company thats not based in the US would have taken the plants and made them useful. I'd personally like to see retooling for electric vehicles and wind turbines, but thats not viable due to the limited productions and high cost. Too bad commercial wind turbines or batteries aren't like the semiconducting industry, with ever decreasing costs.
    10
  • Other Comments
  • I hope Toshiba or any other company out there besides Samsung lend a hand or buy them.
    The last thing we need is Samsung running a Monopoly.
    0
  • I don't agree with governments bailing out businesses that fail.

    I didn't want the government to bail out the car companies that produced cars that people didn't buy. Thats a part of business, when things go bad a new business will usually come about from the old one that failed. I'm sure if GM or Chrysler went under Ford or another company thats not based in the US would have taken the plants and made them useful. I'd personally like to see retooling for electric vehicles and wind turbines, but thats not viable due to the limited productions and high cost. Too bad commercial wind turbines or batteries aren't like the semiconducting industry, with ever decreasing costs.
    10
  • The government needs to bail me out. I could use a couple million.
    18