[January 05, 2012] Elpida seeking 40 bil. yen in aid [The Yomiuri Shimbun] Tweet (Yomiuri Shimbun (Tokyo, Japan) Via Acquire Media NewsEdge) Jan. 05--Elpida Memory Inc., the world's third-largest manufacturer of dynamic random access memory (DRAM) chips, is seeking a total of $500 million (40 billion yen) in financial assistance from about 10 of its business partners, according to sources. The companies include U.S., Taiwan and Chinese makers of information technology devices and semiconductors. Elpida also may ask Toshiba Corp. for financial help, the sources said Wednesday. Elpida's business performance has been deteriorating because of the strong yen and falling prices of their products. The company hopes to make it through the bad times by obtaining funds from the other companies. Elpida will have to redeem 45 billion yen worth of corporate bonds and repay about 77 billion yen of a total of 110 billion yen in loans from financial institutions in early April. The company plans to decide on details of the aid through negotiations with the other companies by the end of this month. Elpida is considering various options, such as receiving advance payments by signing contracts to supply DRAM chips over the long term, and asking for capital contributions to Elpida's subsidiaries. Samsung Electronics Co. of South Korea holds the lion's share of the world's DRAM market at 45 percent. Elpida says if it hopes to compete it must improve its business situation. Some government and financial institutions are trying to strengthen the relationship between Elpida and Toshiba, as they could complement each other since Toshiba manufactures different products from Elpida. Elpida is Japan's only DRAM maker. Its earnings started to deteriorate after the collapse of Lehman Brothers Holdings Inc. in 2008. In June 2009, Elpida received 30 billion yen of public loans via the Development Bank of Japan under the Law on Special Measures for Industrial Revitalization. Elpida later received another 10 billion yen from the DBJ and 100 billion yen from 14 private banks, including three megabanks, as syndicated loans. ___ (c)2012 The Yomiuri Shimbun (Tokyo) Visit The Yomiuri Shimbun (Tokyo) at www.yomiuri.co.jp/dy Distributed by MCT Information Services [ Back To TMCnet.com's Homepage ]