Friday, February 17th 2012

Elpida's Exit from DRAM Industry Will Have Huge Consequences

In case Elpida is unable to repay its debts due in April and goes insolvent, marking its exit from the DRAM industry, the consequences for not just the DRAM industry, but also the PC industry as a whole, will be huge, note industry observers. On the 15th, Eplida released a statement on the assumed going concern in the company with regards to its debt situation. The company has been unable to recover from its condition despite injections of capital backed by no less than the Japanese government.

Elpida has to repay nearly 40 billion JPY US ($505.8 million) to the government, and another 80 billion JPY (US $1.02 billion) in short-term bank loans. Frantic negotiates are on between the company and its long list of creditors that include the Japanese government and other banks to seek an interim relief from the default, even as the company searches for a cash-source that would alleviate the situation and make it survive. Elpida's situation is different from that of Qimonda, it's larger, has more technologies in the pipeline, and has recently set up 30 nm-class mass-production and is testing 20 nm-class production. In other words, it has much greater potential as a company that contributes to the industry, if it survives. Its exit will leave the industry imbalanced, and dominated by Korean DRAM makers such as Samsung and Hynix, and American Micron Technology, a step closer to oligarchical price-controls, observers note.Source: Xbit Labs
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10 Comments on Elpida's Exit from DRAM Industry Will Have Huge Consequences

#2
Wrigleyvillain
PTFO or GTFO
"Buy it while it's cheap" just became even better advice than it normally is.
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#3
AsRock
TPU addict
by: Wrigleyvillain
"Buy it while it's cheap" just became even better advice than it normally is.
I got all mine i need although it was all from Samsung LMAO..
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#4
suraswami
I just upgraded my server from 8 to 16 GB. May be I should go to 32GB instead!
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#5
n-ster
I have no computer... but 32GB of RAM LOL
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#6
sneekypeet
Unpaid Babysitter
How does this play into the news from a couple weeks ago where I read here at TPU that Micron was looking to buy Elpida? I guess that isn't going to happen now?
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#7
MikeMurphy
Aren't they diversified away from dram?
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#8
1c3d0g
by: sneekypeet
How does this play into the news from a couple weeks ago where I read here at TPU that Micron was looking to buy Elpida? I guess that isn't going to happen now?
With the untimely death of Micron's CEO, Elpida's massive debt (a total of around $4 Billion, IIRC), I doubt there's much hope for Elpida now. I hope that at the very least their advanced memory technologies (which show great promise), is bought & integrated by Micron in their excellent RAM modules. :)
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#10
hv43082
Is it time to stock up on DDR3 for back up? I was going to Microcenter to pick up those Samsung MV-3V4G3D/US rams.
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