UPDATE 1-Japan’s Elpida to raise $200 mln from Kingston

* Elpida to raise $125 mln in shares, $75 mln in conv bond

* To use funds for capital investment

* Elpida struggling to keep up with rivals in DRAM market

TOKYO, April 2 (BestGrowthStock) – Japanese memory chipmaker Elpida
Memory Inc (6665.T: ) said it would raise about $200 million by
issuing new shares and convertible bonds to U.S. DRAM module
supplier Kingston Technology.

Elpida, which is struggling to keep pace with Samsung
Electronics (005930.KS: ) and Hynix Semiconductor (000660.KS: ) in
the DRAM chip market, said it would raise 11.7 billion yen ($125
million) by selling Kingston 6.47 million shares.

Elpida also plans to issue a $75 million convertible bond
maturing in 2013 to Kingston.

Elpida said it would use the funds for capital investment as
it aims to advance to finer circuitry to produce DRAM chips more
efficiently.

Hit by the global economic downturn, Elpida received an
injection of public money last year. [ID:nTOE60R07I]

Stock Market

(Editing by Chris Gallagher)

UPDATE 1-Japan’s Elpida to raise $200 mln from Kingston