Elpida, the third largest maker of DRAM chips used in mobile phones and home electronics, has been hit hard by tough business conditions amid the global downturn. Fortunately, the troubled chipmaker Elpida is set to receive around 200 billion yen (US$2.1 billion) in public and private financial aid over three years.

The government is expected to officially approve about 30 billion yen in capital for the chipmaker as early as next week, and the Development Bank of Japan plans to offer 10 billion yen in loans to Elpida, while the Japan Bank for International Cooperation will provide 20-30 billion yen in emergency loans.

A syndicate of Japan’s three megabanks and others is slated to lend around 100 billion yen to Elpida, and a public-private fund that supports innovation will also consider providing tens of billions of yen, according to AFP.