Elpida Memory Inc., facing a deadline to repay ¥93.5 billion in debt by April, may gain financial support for the second time in three years as the government seeks to keep the company alive amid a slump in the chip market.
The Ministry of Economy, Trade and Industry will probably extend support, now set to expire in March, for Elpida, said Yoshihiro Nakatani, a senior fund manager at Asahi Life Asset Management Co.
"The ministry can't let Elpida go under, as it rescued the company under the banner of a Japanese flagship," Nakatani, who manages ¥95 billion and doesn't hold Elpida shares, said in an interview. "Japanese electronics makers are using Elpida's DRAM, so it would mean trouble."
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.