Jun. 30--TOKYO -- Struggling chipmaker Elpida Memory Inc. secured government approval Tuesday to receive 30 billion yen (about $312 million) in emergency investment under a new financial aid program introduced amid the global recession.

Elpida, the world's third-largest and Japan's sole maker of dynamic random access memory chips, will aim to maintain its global competitiveness through a financial package totaling 160 billion yen in bank loans and additional investment including from its Taiwanese technology partner.

The move came despite warnings that the government must be careful about getting involved in rescuing private-sector companies since such rehabilitation efforts, if they fail, will only cause heavy burdens on taxpayers.

Elpida became the first recipient under the program after it sank into the red for two straight years on erosion of chip prices and shrinking demand for DRAM chips, used mainly in mobile phones and personal computers, amid the recession.

"We decided that an injection of public funds would be best for us," in order to secure cash to invest in cutting-edge chip technology, Elpida President Yukio Sakamoto said at a press conference in Tokyo. "If we lose our investment capacity, we will be cast aside in DRAM competition." Elpida will use the fresh funds to upgrade its production equipment and raise output efficiency at its DRAM plant in Hiroshima Prefecture in a bid to narrow the gap on rivals in South Korea and the United States. It will also shift manufacturing of some products abroad to Taiwan.

The 30 billion yen in de facto public funds will come via the state-owned Development Bank of Japan in August, while the DBJ will also lend some 10 billion yen to Elpida, the Ministry of Economy, Trade and Industry said.

Elpida, based in Tokyo, will also receive some 100 billion yen in syndicated loans from commercial banks, including the Bank of Tokyo-Mitsubishi UFJ.

It will also obtain about 20 billion yen in investment from Taiwan Memory Co., a memory chip company set up by the Taiwanese government, which has agreed on a technology partnership with the Japanese manufacturer.

Sakamoto said TMC is seeking about a 10 percent stake in Elpida and the Japanese manufacturer is also considering buying a stake in the Taiwanese partner, though adding that both firms would not become majority stockholders.