Elpida to bankruptcy DRAM market or oligopoly – Elpida, facing bankruptcy, DRAM market monopoly
U.S. market research company DRaMeXchange said in a report, if the Japanese government does not save Elpida, the DRAM chip market will likely oligopoly. Due to debt repayment deadline approaching, Elpida has already warned that the company may not survive.Debt repayment facing problemsElpida shares on the Tokyo stock market fell sharply Wednesday. The company said earlier that the repayment will be due April 92 billion yen (about $ 1.2 billion) of bonds and loans can not finance. Affected by this news, Elpida, rival Samsung Electronics and Hynix shares up sharply.DRAMeXchange said: \"If the Japanese government to take measures to help Elpida, the PC and the DRAM market by the negative impact will be immense. The DRAM market will further toward oligopoly. \"If the oligopoly formed, few companies will completely control the entire market, price competition will cease to exist.One analyst said that the Japanese government will provide support for Elpida. Elpida to go bankrupt, then the lender will be a huge loss, 6000 Elpida employees will be unemployed, which is the Japanese government does not want to see. Last year, the U.S. PC market, the first time in 10 years since the landslide, while DRAM chips for PC products.Similar to the debt crisis in EuropeIshida Friends of a, an analyst at Mizuho Investors Securities, said: \"Elpida's situation is similar to the Greek government. The government will once again provide support to save Elpida, no one will benefit from a hard landing. \"He Elpida rating of\" neutral \".Wednesday Tokyo stock market trading, Elpida up shares fell 14 percent to 320 yen. This record the biggest decline since September 2009, the company's share price. Last year, the market value of the Elpida dropped 62 percent, compared with a decline of 37% in 2010. Samsung Electronics and Hynix shares were up 5.1 percent and 5.3 percent the day. The third quarter, data released by IHS iSuppli, Samsung in the DRAM market share of 45 percent, Hynix and Elpida to 22% and 12% respectively.According to Barclays Capital, the price data on Wednesday, Elpida expire in August 2016 for ¥ 100 each convertible bond trading prices fell to 64 yen, while the rate of return of 22.7%. But due in October 2015, 100 yen each convertible bond trading price fell to 70 yen, yield up to 27.4%.Elpida said that at present not been able to with the Japanese Ministry of Trade, the Japan Development Bank and lenders to reach an agreement on February 14. Due to the decline in chip prices, Elpida will face a more difficult situation of the debt service. The data show that Elpida currently a total of $ 4.16 billion in bonds and loans. Japanese credit rating agency has Elpida's credit rating down from BBB to BBB-, the lowest investment rating.Elpida had said on February 2, will be held March 31 to obtain financing. Development Bank of Japan, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Trust and Banking lenders spokesman declined to comment. The Japanese trade ministry official declined to comment.Or the government abandonedThe Elpida reached established in 1999, the merger of the memory chip sector by NEC and Hitachi. Fujitsu was announced to give up this business, Toshiba announced the withdrawal of this business in 2001, focus on the NAND flash memory business. Mizuho Asset Management fund managers Aoki just said that the Japanese government should not like to save Tokyo Electric Power and Japan Airlines are the same save Elpida.He said: \"Do we have the need for DRAM makers to become part of our national policy? Elpida is difficult to obtain growth in many developed countries there is no DRAM makers. \"Sakamoto, Elpida CEO Yukio said, as of February 2, Elpida holdings of cash and deposits of 50 billion to 60 billion yen, lower than the 97.4 billion yen in December last year. Elpida to repay 30 billion yen bonds due January 24. Sakamoto Sakamoto also said that Elpida may be ¥ 50 billion in financial support from customers. The documents show that Elpida shall be repaid on March 22 ¥ 15 billion in bonds to repay a loan of about 77 billion yen on April 2.The Elpida landslides show that Japanese firms suffered in competition with Samsung Electronics, an unfavorable situation. Samsung Electronics chip business last year, operating profit of 7.34 trillion won (about $ 6.5 billion). Sakamoto Yukio said last year that the chip is as cheap as Fan Tuanzi.The data DRaMeXchange 2GB DDR3 DRAM prices as a benchmark in November last year hit a record low of 71 cents. In the past year, PC sales decline, the price of this product fell 61 percent to 88 cents. Over the past three years, Elpida, Hynix and other DRAM manufacturers a total loss of $ 14 billion.BGC Partners Asian securities sales manager Aimar * Anwasade, (Amir Anvarzadeh), said: \"They have announced to the customers of financial problems. As they say, we have a problem, we need to pre-payment. \"(/ SAN)
