Japan’s Elpida Memory is to receive up to Y160bn ($1.7bn) in new capital through a state-led bail-out that will delay further rationalisation of the dynamic random access memory industry.

The state-owned Development Bank of Japan will buy Y30bn in preference shares and lend another Y10bn. Taiwan Memory Company – set up by the Taiwanese government to support its D-Ram industry – plans to contribute another Y20bn in capital. Elpida’s commercial banks will provide Y100bn loans.