Elpida to Receive 2.1 Billion USD in Aid

DRAM major Elpida, like most other Japanese companies, is not seeing the best of days, in fact its worst. The world's third largest DRAM company holds great importance to the Japanese electronics industry. The state-backed Development Bank of Japan (DBJ) will acquire shares in the company, and the government has approved dispatching 30 billion Yen to the company as early as by next week. DBJ separately plans to offer 10 billion Yen, while another state-backed financial institution Japan Bank for International Cooperation, will provide 20~30 billion Yen in emergency loans.

Three of Japan's megabanks and others are expected to lend around 100 billion Yen to Elpida, said Nikkei daily, adding that a public-private fund that supports innovation will also consider providing tens of billions of Yen. In all, at least US 2.1 billion worth of aid is coming Elpida's way. More companies will follow suit and seek government aid.