Update: Synopsys Expands DesignWare IP Portfolio with Acquisition of Kilopass Technology (Jan. 10, 2018)
Charlie Cheng, CEO, Kilopass Technology Inc.
EETimes (3/7/2012 6:28 PM EST)
With Elpida's petition to re-organize February 27, we are reminded of the harsh reality that the fantastic rumor of Japanese government bailout doesn't come free, nor quick enough to cure a decade of decline. But it's probably safe to assume some sort of consolidation will happen. So the question we ask is, how does the rumored mega-merger affect the electronics industry at large?
First, let's look at why Elpida was left to deal with the $5.5 billion debt on its own. I am sure part of it is the "moral hazard" principle that most governments face. Why spend taxpayer money to bail out companies with years of poor financial performance? But the more important issue is that Elpida has simply run out of maneuvering space, with fierce competition, a strong yen, and poorly positioned commodity products. Simply finding another strategic partner in Taiwan to lose more money is not a viable strategy.
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