Elpida and Toshiba Pass to Prepare to Consolidate Memory Business

We learned that memory chip makers Elpida and Toshiba are in the process of negotiating a merger of the memory business. It is said that the Japanese government played a key role in the merger and contributed to the merger. There have been reports that Elpida had problems with fund repayments.

The Japanese government plans to draft an integrated form of integration between Elpida and Toshiba, which is the only Japanese DRAM maker, and the latter is a major supplier of flash memory chips. The purpose of this integration is to integrate both DRAM, flash memory and logic integrated circuit (IC) technologies and assets to prevent Japan from being constantly marginalized by the Korean semiconductor industry in the semiconductor industry. Although the relevant market continues to shrink, the Japanese government still believes that domestic DRAM technology and assets should be maintained.

After the merger, Toshiba can use Elpida's mobile RAM technology and assets to accelerate and optimize its development of flash memory products in mobile devices, and to help Toshiba to better compete with Korean and US manufacturers.