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Japan's Spansion files for bankruptcy
The Japanese unit of flash memory maker Spansion Inc said it filed for bankruptcy protection yesterday with total liabilities of $810 million (Dh2.9 billion), the latest victim of the chip sector's global downturn.
- Reuters
- Published: 23:04 February 10, 2009
Tokyo: The Japanese unit of flash memory maker Spansion Inc said it filed for bankruptcy protection yesterday with total liabilities of $810 million (Dh2.9 billion), the latest victim of the chip sector's global downturn.
Sharp price falls and weak demand in the chip market, which are also hurting rivals Samsung Electronics Co and Toshiba Corp, as well as declining popularity of NOR-type flash memory have prompted Spansion Inc itself to restructure operations and explore a possible sale.
The filing comes after Germany's Qimonda, the world's fourth-largest maker of DRAM chips, became the first major chipmaker to file for insolvency last month amid the global crisis and the sector's worst-ever slump.
US-based Spansion Inc, the world's third-biggest flash memory maker, said the Japanese unit's filing does not "materially" affect its global operations. It added that the unit had sufficient cash on hand to meet its short-term working capital needs.
"We intend for Spansion Japan to continue to operate throughout the restructuring period," Spansion Inc President and CEO John Kispert said in a statement.
Spansion Inc is the world's biggest maker of NOR-type flash memory with a market share of about 40 per cent.
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