Semiconductor History | 霞が関一丁目 — The Day Japan's Last DRAM Maker Filed

On 27 February 2012 the last Japanese maker of DRAM went into the building at 霞が関一丁目1番4号 and asked to be placed under the Corporate Reorganization Act.

エルピーダメモリ filed with liabilities of ¥448 billion. Its subsidiary 秋田エルピーダメモリ filed the same day with ¥7.9 billion more.

It was the largest failure of a manufacturer in Japan's postwar history. The president, 坂本幸雄, bowed at the press conference and apologised to creditors.

Less than three years earlier the state had rescued the company. In June 2009 the Ministry of Economy, Trade and Industry approved support under the Act on Special Measures for Industrial Revitalization: ¥30 billion of essentially public money through the Development Bank of Japan, and roughly ¥100 billion in loans.

The rescue came with a plan. Elpida was to move commodity DRAM production to Taiwan and turn the 広島 plant over to high-value memory for mobile devices.

By the 2010 financial year that advanced product was still only about 30 percent of sales, the yen was punishing every exporter, and the company had lost money for five straight quarters.

The court opened proceedings on 23 March 2012. The shares were delisted five days later, having fallen to one yen.

Micron signed as sponsor on 2 July 2012. Creditors approved the reorganisation plan on 26 February 2013 and the court approved it two days after that, over objections from bondholders who argued the company was being sold too cheaply.

The transaction closed on 31 July 2013. Micron paid $615 million for Elpida and $334 million to 力晶 for a further slice of the Taiwanese joint venture, and booked a $1.484 billion gain because what it received was worth more than what it paid.

The joint venture in question was 瑞晶電子 at 后里, Taichung, which is how a bankruptcy in Tokyo made an American company one of the larger foreign manufacturers in Taiwan.

One filing left three companies making the world's DRAM: Samsung, SK Hynix and Micron. That is still the number.

The building houses the Tokyo District, High and Summary Courts together, a short walk from 霞ケ関 station. Public galleries are open and hearings can be observed.

The photograph shows the combined court building, where the Tokyo District Court sits.

Photo: 663highland, CC BY 2.5, via Wikimedia Commons