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Saturday, June 30, 2012

Micron to buy Elpida for ¥200 billion

Kyodo

Major U.S. chipmaker Micron Technology Inc. has agreed to buy bankrupt Elpida Memory Inc. for about ¥200 billion, paving the way for a foreign firm to rehabilitate the only Japanese maker of dynamic random access memory chips, sources said Friday.

Micron is expected to also invest around ¥100 billion to boost production facilities at Elpida, they said.

The Idaho-based firm will seek to write off around 70 percent of the failed chipmaker's liabilities, totaling about ¥420 billion, the sources said.

Elpida will submit its rehabilitation plan by Aug. 21. It will continue operations at its mainstay plant in Hiroshima Prefecture as well as its unit in Akita Prefecture, the sources said.

Micron, which also manufactures DRAM chips, will invest mainly in Elpida's Hiroshima plant to boost DRAM production for smartphones.

Elpida filed for court protection from creditors on Feb. 27. The company has selected Micron as its rehabilitation sponsor and started negotiations after approval from the court last month.



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