Publication Date：02/29/2012
Source： Taiwan Today
By Meg Chang
Taiwan tech firms and investors will not be left out in the cold following the bankruptcy filing by Japan’s Elpida Memory Inc., according to the Ministry of Economic Affairs Feb. 29.
“The ministry and Financial Supervisory Commission are working closely to draft measures for minimizing any possible impact from Elpida’s move,” an MOEA official said.
The official’s remarks came after Elpida, Japan’s leading manufacturer of dynamic random access memory chips, submitted a bankruptcy petition Feb. 27 with the Tokyo District Court. The strong yen and steep fall in DRAM prices brought about by increased competition forced the firm to seek court protection as it implements corporate restructuring.
Taiwan firms maintaining close ties with Elpida included ADATA Technology Co. Ltd., Powertech Technology Inc., local subsidiary Rexchip Electronics Corp. and Walton Advanced Engineering Inc., according to the FSC.
“We have advised these parties to properly secure their claims on Elpida,” the official said, adding that all firms should waste no time in seeking backup DRAM supplies to ensure uninterrupted operation.
After consulting Taiwan Stock Exchange Corp. and the Securities and Futures Investors Protection Center Feb. 28, the FSC ordered Elpida’s Taiwan Depository Receipts delisted one month later. A total of 0.97 percent of the firm is owned through TDR.
“We require Elpida to buy back all outstanding TDR with no strings attached as per conditions prescribed in registration statements,” the official said.
Although the Japanese chipmaker is expected to continue production during bankruptcy proceedings, the MOEA is taking no chances.
“We will closely monitor the situation and take appropriate action to ensure sustainable development of Taiwan’s DRAM industry and related sectors,” the official said. (JSM)
