Chip Market: Can't pay off due debts? Elpida applies for postponement of repayment

Elpida is the third largest manufacturer of DRAM semiconductor chips in the world, headquartered in Tokyo, Japan. It manufactures DRAM particles and manufactures Elpida memory sticks. According to recent news reports, it was reported that Elpida had applied to the Japanese government for a delay in repayment due to its inability to pay off the 2.44 billion yuan debt due in April 2012.

According to reports, during the financial turmoil in 2009, Elpida accepted the 2.44 billion yuan of public funds from the Japanese government and agreed to repay it due in April next year. Up to now, Elpida’s accumulated liabilities have been approximately 27.68 billion yuan. After applying to the government for deferment of repayment, finances are still tight. However, Elpida emphasized on the 29th that it will do its utmost to find new sources of funds and “pay new debt to old debt” to solve financial problems. Japan's Asahi Shimbun pointed out that Elpida is facing enormous pressure for debt repayment and it is unlikely that it will receive major bank financing.

Industry analysts believe that Elpida's future operations and technology research and development will be affected; Li Cheng, Li Jing, Rui Jing and other Taiwanese partners will be involved, and set off a new wave of global DRAM industry reshuffle. The last DRAM reshuffle took place during the 2009 financial turmoil, when Qimonda, the world’s fifth-largest German company, went bankrupt and withdrew from the market, stimulating DRAM prices to soar, and allowing South Korean companies such as Samsung and Hynix to market. The share has continued to expand. However, some industry analysts said that the Japanese government should not allow Elbeg’s debt problem to expand, but the huge debt may make it difficult for Elpida to stretch. “The Taiwan and Japan will jointly fight against South Korea” will become increasingly difficult to follow.