Shares of Elpida have plunged on the Tokyo Stock Exchange (TSE) after investors dumped stock after firm filed for bankruptcy protection.
The company shares dipped as much as 98% to 5 yen. The TSE has said that it will delist Elpida from 28 March.
The firm sought bankruptcy protection Monday saying it had struggled to repay debts of 448bn yen ($5.6bn; £3.5bn).
Meanwhile, the Japanese government has not given any hint on whether it may bailout the firm.
“Given their huge debts and the subsequent delisting, the share value will go to zero – that is pretty clear,” Gerhard Fasol of EuroTechnology Japan told the BBC.
‘Critical issue’
Elpida, which specialises in making dynamic random-access memory (DRAM) chips, has seen its fortunes recently dwindle.
Not only has the company been hurt by a slowing demand for these chips, falling prices have also hurt its profits.
Analysts said given its debts, the firm will have to find a deep-pocketed partner to help turn around its business.
“They need to have a partner for the revival. The critical issue is who will that partner,” said Mr Fasol of EuroTechnology Japan.
However, Mr Fasol said Elpida may find it difficult to convince other companies to invest money in its business.
“They have tried to find a partner but they couldn’t find any. That is why they have had to file for protection the first place.”
