Elpida Memory Likely to Seek a Second Bailout
Elpida Memory, the world's third largest DRAM maker, may be seeking another round of government funding to finance its business.
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.
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.
The last thing we need is Samsung running a Monopoly.
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.
GM and Chrysler did go under though, in terms of them declaring bankruptcy, pretty sure Chrysler was purchased (at least controlling share) by Cerberus-sounds sinister-group or something like that
What I really don't like is large financial institutions taking insanely large risky 'investments' that when fail and falter utterly destroy a nations economy. The people in charge of such institutions are suppose to invest and not speculate on bullshit. Sorry for the rant, just don't like the middle class suffering due to poor decision making that was not their own. Alas, this appears to be the trend both historically and currently.
oops...double post
It's a Japanese company. By the way, the latest news is that Toshiba would like to merge with them and the share of Elpida actually goes up.It is a tough market for DRAM maker since they are at a record low price. If they can bring out DDR4, maybe the higher profit margin can help them a bit.
BTW Shuffman, every politician the world over thinks Austrian Economics are a terrible macro-economic solution. Don't you realize what a fool hardy idea it is to think about how you will pay your bills a week from now? Obviously politicians have your best interests at heart, and that interest is to keep you spending your entire check.
you have to keep my new job loss.
that's the main reason why governments willing to bail out corporations.
Now correct me if I'm wrong but bailouts given to the auto manufacturers have strings attached, and for the most part have been completely repaid. I see nothing wrong with investing in a company that's going through a rough patch. And these were companies that no one wanted to buy for, there were companies that sold us some more expensive car and no one wants to pay that much for car right now.
I'm okay with any bailouts along the strings are attached and are not given the money to do with whatever the hell they want.
risky investments, while in their name they are risky can also have a large pay off. If someone had a world changing idea I have no problem giving them crap tons of money to try and see it through because the idea is worth it.
However most of them bought debt. Which is kind of really stupid, at least the corporation buying countries debt. Countries by another country debt I get.
52% of Chrysler is held by Fiat SpA....
http://www.businessweek.com/news/2011-06-03/fiat-buys-rest-of-u-s-s-chrysler-stake-right-to-uaw-shares.html
I kind of agree with the whole, we shouldn't bail out failing companies, but if we didn't then there wouldn't be any jobs in America. Kind of a lose-lose situation.
we don't need ddr4...what we need is a new kind of ram, we need something that can retain the information put on it for unlimited amount of time without battery back up...it also needs to be faster and more power efficient....take a look at the CPU industry, it has come a long way......the ram industry is lagging behind big time
You failed to perform, her is your golden parachute...
Elpida = Hope (in Greek)
Non-volatile RAM is already being researched and tested by IBM and several other companies.
Magnetoresistive RAM
http://en.wikipedia.org/wiki/Non-volatile_memory
Time will tell...