The likely closure of Elpida will have major consequences

One of the major global players of the DRAM, Elpida Japanese, could close its doors as early as April.


The likelihood of Elpida out of DRAM industry is more and more strong as we approach the month of April in which the company must pay the debt that it has with the Japanese Government. If this is the case, the consequences will be heavy for the DRAM market but not only, since it is the PC industry that could be affected by an increase in the prices of the RAM.

On February 15, Elpida has published a note in which the company explained the situation in which it finds itself, recognizing its inability to repay the Government. Talking of some 40 billion yen to reimburse the Government, $ 505 million, plus the $ 80 billion yen of loans contracted with banks of investment in the short term, additional $ 1 billion.

Of course, the direction of Elpida actively seeking a solution and new funding to ensure its survival, but so far no valid trail has been mentioned. But Elpida as a motor for the industry of DRAM with its effective process on the 30 nm, not to mention its successful work on the 20 nm, his miracle rescue remains a possibility in view of its potential. If Elpida, the DRAM market will be dominated by the Korean Samsung and Hynix and Micron American. The observers note that this oligopolistic situation is dangerous, probably leading to a rise in prices. Rising prices which we are already talking about referring to the possibility of a merger around Elpida.


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