Elpida Rises Most in Six Weeks in Tokyo on Report of Toshiba Integration
Elpida Memory Inc. (6665), the Japanese chip maker being reorganized with government support, jumped the most in six weeks in Tokyo after DigiTimes reported the company is in talks with Toshiba Corp. (6502) to “integrate” operations.
Elpida, Japan’s biggest maker of dynamic random access memory chips, jumped as much as 9.5 percent, the biggest intraday jump since Nov. 25, to 392 yen. It changed hands at 378 yen as of the 11:30 a.m. trading break. Toshiba declined as much as 1.6 percent to 310 yen.
Japan’s government may push some form of integration between the companies to maintain competitiveness against the chip industry in South Korea, DigiTimes reported Jan. 3, citing industry officials it didn’t identify. Elpida and other makers of the most-common chip in computers lost a combined $14 billion in the past three years, in part because prices plunged to a record low last year.
“We deny such speculations,” Keisuke Ohmori, a Toshiba spokesman, said by phone. Tokyo-based Elpida said in an e-mailed statement to Bloomberg News that the company “doesn’t comment on rumors or speculation.”
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