Someone cue up Queen's "Another One Bites the Dust" and don't stop playing until the memory chip market has been fully weeded out. It was only a week ago that Germany-based chip maker Qimonda became the first major memory chip maker to file for bankruptcy, and now Spansion Japan appears to be on the chopping block as well.
Originally spun off by AMD in 2005 to create flash memory, Spansion now owes just shy of $810 million, making it the biggest bankruptcy filing in Japan's manufacturing sector this year. However, the company maintains that its operations will continue on as normal.
"Spansion Inc. does not expect the filing in Japan to materially affect its global operations," the company said Monday. "Spansion Japan Ltd. will continue its operations and intends to pay, in a timely manner, for all goods and services that it obtains after the date of filing."
How the bankruptcy court decides to proceed remains to be seen, but it would have a number of options available, from letting Spansion continue to operate as it restructures, to full-scale liquidation.