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Elpida Memory Filed For Bankruptcy With $5.6 Billion Debt

Section: Marketing

Elpida Memory filed bankruptcy with a debt of $5.6 billion on yesterday caused by growing competition, sluggish global economy and the shifting from personal computers to tables and smartphones.

Elpida Memory Inc is a leading company that develops designs and manufactures and sells DRAM (Dynamic Random Access Memory) products. The company was established in 1999 while in the year 2003 it achieved the current name. Now it is the third largest PC memory chip manufacturer of the world, with 12 per cent share following Samsung Electronics with 25 per cent market shares and Hynix with 22 per cent market shares.

According to market researchers and industry experts it is the largest ever bankruptcy filed by a Japanese manufacturer and it could symbolize the ending of Japanese dominance in the DRAM chips business.

Elpida is now planning to reshuffle it business following courts approval. However, it won’t     be easy for the company to set its foot again in the DRAM business as Samsung and Hynix, the two South Korean giant chip manufacturers are now ruling the business. As the two companies are leading the market DRAM chip prices may be jumped a little.

Although the DRAM chips were invented in America, Japanese companies that manufactured the chip left behind the American DRAM chip manufacturers with the help of their low-priced but high quality chips. But since when South Korean companies came into the business Japanese companies started to struggle. South Korean companies adapted the new changes in technology faster than the Japanese companies and that helped them in taking the leading position in market. Moreover, the people’s shifting interests from PC to smartphones and tablets that incorporated fresh memories rather than DRAM also damaged the DRAM business.

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