Elpida Memory reportedly plans to release its control over the company to a new management team that will come from an open bid, and industry sources have speculated that Micron Technology has offered US$1.5 billion to take over the Japan-based DRAM maker.

In addition to Micron, Toshiba and Globalfoundries are also among the most likely bidders for Elpida, which filed for bankruptcy in February 2012, the sources claimed. Micron has appeared as the first to make an offer, which the sources consider as a move to find out levels of acceptable prices for both seller and buyer.

The speculation came after a Nikkei report indicated that several companies headquartered in the US, Japan and Taiwan were considering bids for Elpida, including Micron, Intel, Toshiba, TSMC and Formosa Plastics Group. Under a new capital structure, Elpida will restructure its management team, according to the report.

These potential buyers are scheduled to enter the first round of bidding for Elpida later in March, and the second round in April, with some decision to be made by May, Nikkei reported.

Globalfoundries was once speculated as a likely buyer for Elpida's 12-inch wafer fab in Hiroshima, according to previous reports. Speculation also rose previously that Globalfoundries would be involved in the Japan government's push to merge the operations of Renesas, Fujitsu and Panasonic, and as a foundry partner of the merging company, Globalfoundries would take over Elpida's Hiroshima factory.

In addition, Elpida and Toshiba had been in integration talks, led by the Japan government, previous reports quoted industry sources as saying. However, the talks have come to a standstill as Toshiba only agreed to take over Elpida's mobile DRAM technology and assets, according to the reports.

Digitimes Research analyst Nobunaga Chai commented that Elpida's debts and assets unrelated to mobile DRAM products will be the issue any buyer should consider. For development of the Japan semiconductor industry, the best-case scenario is that Toshiba combines its NAND flash expertise with Elpida's DRAM capacity and technologies, Chai suggested. Integrating CPU, GPU, NAND flash and mobile DRAM chips into one chip – the so-called "total solution" – will be a trend Japan does not want to miss out, Chai said.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved