The benefit of launching the TDR offering goes beyond the capital raised, however. As Elpida looks to better leverage Taiwan’s DRAM manufacturing ecosystem, its presence in the local financial markets could provide valuable clout. Furthermore, a successful fundraising endeavor in Taiwan may prove invaluable in the coming months if the DRAM market suffers another steep decline and cash once again becomes scarce. In this eventuality Elpida will be up the experience curve and should be able to initiate Taiwan-based funding more easily. Elpida does not have the strongest balance sheet in the DRAM industry and any move that improves its cash position could prove hugely valuable.
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