Once the world's third largest memory manufacturer, holding 18 per cent of the market, Japanese firm, Elpida, filed for bankruptcy back in February, seeing its stocks de-listed from the Tokyo Stock Exchange, with liabilities of £3.6 billion. It's believed that the high-value of the yen made it impossible for the firm to keep-up with rapidly dropping global DRAM prices - not an uncommon issue in well-developed countries, where it is expensive to export and the cost of labour is greater.
Despite its inherent disadvantages and perhaps enabled by tougher economic times in Japan, US firm, Micron, has not given up on Elpida and, attracted by its existing factories and infrastructure at a time when the firm is looking to expand, Micron is to acquire the Elpida for £1.6 billion, after promising to keep the Japanese workforce, gaining exclusive bidding rights.
£1.6 billion is a clear shortfall from the firm's initial £3.6 billion in liabilities, meaning that 67 per cent of the firm's current debt will not be paid-off, with left-over money going towards the firm's contractors and business partners.
Micron is rumoured to have plans to spend £800 million on expanding the Japanese factories, ramping up production of LPDDR-based products amongst several others. This deal will see Micron become the world's second-largest memory supplier, next to Samsung.
Expect an official announcement in the next few months, as details are expected to be finalised towards the end of August.