Tue, Jan 27, 2009 - Page 6 News List

Elphida Memory’s stock rises as rival hits skids

BLOOMBERG

Elpida Memory Inc, Japan’s largest computer-memory chipmaker, rose the most in more than a week in Tokyo trading after rival Qimonda AG filed for insolvency, easing competition amid a glut.

Elpida climbed 6.4 percent to close at ¥546 (US$6.15) on the Tokyo Stock Exchange.

The insolvency may help reduce supply growth in the US$25 billion memory-chip industry this year, especially for graphics and server semiconductors, California-based ISuppli Corp said in a report after Qimonda’s announcement on Friday.

Munich-based Qimonda’s factories account for 5 percent of global output of dynamic random access memory, the researcher said.

Qimonda, a unit of Infineon Technologies AG, said it sought protection from creditors after failing to secure financing as an oversupply led memory-chip prices to fall 51 percent last year.

“This could help right the demand-supply balance in the long term, but we don’t foresee any immediate impact,” Kumiko Higuchi, a spokeswoman for Elpida in Tokyo, said by telephone yesterday.

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