According to reports, Micron Technology Inc, a United States chipmaker is in talks to purchase Japanese chip manufacturer Elpida Memory Inc. Elpida Memory, the Japanese chipmaker, also filed for the biggest manufacturing bankruptcy in the history of Japan earlier in 2012.
However, Micron Technology said that it formally announced its plans of buying Elpida after the Japanese company’s trustees were given permission by Tokyo District Court to talk an agreement with the United States based company to become the Japanese company’s sponsor. The Tokyo District Court also allowed Micron to buy Elpida’s business according to the proceedings of corporate reorganization proceedings.
The news of Micron Technology acquiring Elpida Memory was confirmed by Elpida, as the company said in a news statement that it is confirming talks with the former company and that talks are “underway”.
Elpida is the only company in Japan that specializes in manufacturing DRAM chips that are found in cellphones and personal computers. The company earlier reported a debt worth $5.5 billion or 448 billion yen, filing bankruptcy in February. Elpida’s bankruptcy came as a shock as the company’s debt and bankruptcy turned it into the biggest company in terms of debt.
Elpida had previously announced that it is undergoing restructuring and reorganization after it spent years sliding prices of chips due to a supply shortage. The company also struggled because of the tough competition it faced from Korea based Samsung Electronics Co. Elpida struggled due to slow sales and external and natural events such as the flooding that took place in Thailand last year also brought supply disruptions.
However, Micron Technology wasn’t the only company interested in acquiring Elpida as reports suggest that SK Hynix, a South Korean based company, also showed interest in buying the bankrupt company. SK Hynix also placed it bid for Elpida but eventually gave up last week, after it removed its bid.