TechCrunch Disrupt Europe 2014: Photos, commentary and the Startup Battlefield LIVE

Feedback

Apple Rumoured To Push Micron-Elpida Merger

Business & GovernmentNews
by Radu Tyrsina, 11 May 2012News

Japan's Elpida Memory Inc and US-based Micron Technology Inc recently confirmed upon talks to merge. The new company will become the world's second-largest DRAM maker.

Apple is believed to be behind the bidding procedure. Elpida, despite its position among the top three companies producing DRAM chips, is also in serious financial trouble.

The company filed for bankruptcy this February, due to its ¥448 billion ($5.62 billion/£3.48 billion) debts. This is "the biggest corporate failure in Japanese manufacturing history," say media sources.

Micron is also a top player in the DRAM chip making industry, holding on to fourth position. The US company confirmed in a statement discussions with Elpida's board of trustees to acquire Elpida's entire business.

The Tokyo District Court has allowed Elpida to start negotiations "in accordance with the corporate reorganization proceedings." This process lets Elpida choose a corporation to "sponsor" the reorganisation and start a bidding process.

Elpida is a major supplier of memory for Apple devices, including the third generation iPad. Unconfirmed rumours form the industry suggest Apple might have pushed Micron to bid for Elpida's reorganisation process.

The Cupertino company wouldn't want additional problems in its supply chain, apart from the ones caused by the Retina Display.

Topics
blog comments powered by Disqus