Spansion ((SPSN), a manufacturer of flash memory devices filed for Chapter 11 bankruptcy protection today.

The company, which is headquartered in Sunnyvale, California makes memory devices used in numerous consumer electronic devices. From the company web site:

Spansion is the largest company exclusively focused on Flash memory solutions. Flash memory can be found in nearly every electronic device- in cell phones, cars, printers, networking equipment, set-top boxes, high-definition TVs, games and other consumer electronics. As people continue to demand more multimedia content in their homes, at work and on the go, and as electronic products become increasingly complex, the amount of Flash memory in electronic devices will continue to grow.

With a primary focus on the integrated Flash memory market, our solutions are incorporated into electronic products from Original Equipment Manufacturers (OEMs), including the top ten handset, consumer electronics and automotive OEMs around the world.[...]

Spansion, publicly traded on NASDAQ [SPSN], was previously a joint venture of AMD and Fujitsu and draws upon a rich history of technological innovation and market leadership that dates back to the early days of the Flash memory market. Spansion has approximately 8,900 employees around the globe focused on enabling our customers to innovate more quickly, more efficiently and more broadly.

The Associated Press reports that the company chose to file for bankruptcy as it tries to deal with $625 Million worth of debt. The company is exploring a possible sale or merger. The announced bankruptcy comes just one week after they announced a workforce reduction of 3,000 employees.

Spansion says the decline in the global economy has resulted in lower demand for it’s products as manufacturers of consumer electronic products have scaled back production.

Shares of Spansion were trading near the $20 dollar per share range just one year ago, on Friday shares traded at just $0.05 per share.

Flash Memory Sector Declines is a post from: Rebel Traders - Stock Market and Economic Analysis