Tuesday, 30th June 2009
In Business In Japan,
Japanese chip manufacturer receives £1b bailout
Computer chip manufacturer Elpida has become the first Japanese business to receive state funding after securing a 160 billion yen (£1 billion) capital injection.
The aid package will consist of contributions from a number of private and public investors including the Development Bank of Japan and Taiwan Memory Company, Elpida's Taiwanese government-owned technology partner.
It is hoped that the financial package will allow Japanese manufacturing to regain a foothold in the dynamic random access memory (DRAM) chip production market, in which it has recently suffered due to competition from rivals such as South Korea's Samsung.
Company president Yukio Sakamoto told reporters that the money would be used to consolidate the company's position ahead of what he described as the culmination of the battle for the DRAM market.
Earlier this month, the Nikkei Business Daily reported that the struggling Japanese air carrier Japan Airlines was to receive a 100 billion yen loan from the government.
Written by Graham McPherson