Creates Largest Domestic Merchant Supplier of Leading-Edge Photomasks
in Taiwan
"Photronics DNP Mask Corporation" Combines DNP's Logic Photomask
Technology and PSMC's Memory Photomask Technology and Operating Scale
BROOKFIELD, Conn.--(BUSINESS WIRE)--
Photronics,
Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative
imaging technology solutions for the global electronics industry, today
announced an agreement with Dai Nippon Printing Co., Ltd. (DNP)
(7912:Tokyo Stock Exchange) to merge Photronics Semiconductor Mask
Corporation (PSMC), a majority owned subsidiary of Photronics, with DNP
Photomask Technology Taiwan Co., Ltd. (DPTT), a wholly owned subsidiary
of DNP, to form a joint venture focused on serving semiconductor
manufacturers in Taiwan. Photronics and DNP will own 50.01% and 49.99%
of the joint venture, respectively, and its financial statements will be
included in the consolidated financial statements of Photronics, Inc.
The joint venture is subject to regulatory approvals and customary
closing conditions and the non-cash transaction is expected to be
finalized during the first half of Photronics' Fiscal Year 2014.
The joint venture will leverage DNP's leading technology processes in
logic photomasks and PSMC's advanced technology processes in memory
photomask manufacturing and operating scale. It will operate under the
name Photronics DNP Mask Corporation (PDMC) and current PSMC President,
Dr. Frank Lee, is expected to be named General Manager of the joint
venture.
Constantine ("Deno") Macricostas, Photronics' chairman and chief
executive officer commented, "This combination of strengths in logic and
memory photomask technology, leveraged by our highly efficient operating
model and investment strategy, will provide a superior long-term
capability for our customers in the region. In fact, this combination of
resources and capability creates the largest domestic supplier of
leading edge photomasks in Taiwan with the scale to address 14 nm and
beyond technology."
Peter Kirlin, Photronics' President remarked, "We are excited to partner
with DNP in bringing high-end technology and equipment with scale and
efficiency to Taiwan. This is a milestone achievement for Photronics
given that Taiwan is a major hub of semiconductor manufacturing and an
integral part of our worldwide growth strategy."
Koichi Takanami, Executive Vice President, Dai Nippon Printing Co., Ltd.
stated, "Both DNP and Photronics are global top players in the
outsourcing market of photomasks, key devices for manufacturing
semiconductors. Considering the strategic importance of the Taiwanese
market for both companies, we have made a decision to work in
partnership with Photronics, the most suitable partner for the synergy
creation by combining the complementary strength of both companies, and
will enhance our competitive advantages and deliver high-quality
products and services to our customers."
A conference call with investors and the media to discuss the joint
venture is scheduled for 8:30 a.m. Eastern time on Wednesday, November
20, 2013. The call can be accessed by logging onto Photronics' web site
at www.photronics.com.
The live dial-in number is 408-774-4601.
About Photronics
Photronics
is a leading worldwide manufacturer of photomasks.
Photomasks are high precision quartz plates that contain microscopic
images of electronic circuits. A key element in the manufacture of
semiconductors and flat panel displays, photomasks are used to transfer
circuit patterns onto semiconductor wafers and flat panel substrates
during the fabrication of integrated circuits, a variety of flat panel
displays and, to a lesser extent, other types of electrical and optical
components. They are produced in accordance with product designs
provided by customers at strategically located manufacturing
facilities in Asia, Europe, and North America. Additional
information on the Company can be accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements made by or on behalf of
Photronics, Inc. and its subsidiaries (the Company). The forward-looking
statements contained in this press release and other parts of
Photronics' web site involve risks and uncertainties that may affect the
Company's operations, markets, products, services, prices, and other
factors. These risks and uncertainties include, but are not limited to,
economic, competitive, legal, governmental, and technological factors as
well as decisions we may make in the future regarding our business,
capital structure and other matters. Accordingly, there is no assurance
that the Company's expectations will be realized. For a fuller
discussion of the factors that may affect the Company's operations, see
"Forward Looking Statements" in the Company's Quarterly and Annual
Reports to the Securities and Exchange Commission on Forms 10-Q and
10-K. The Company assumes no obligation to provide revisions to any
forward-looking statements.
About Dai Nippon Printing
DNP
[Dai Nippon Printing Co., Ltd.] is a world-class comprehensive
printing company with 1.446 trillion yen in annual revenues and
approximately 40,000 employees. Based in Tokyo, Japan, DNP offers a
broad range of products and services for publishing, commercial
printing, smart cards, networking, and electronics components, among
others. Its products in the electronics field include color filters and
other components for LCDs, photomasks, and semiconductor-related
components. In the photomask market DNP is a world leader, utilizing its
time-honored printing techniques and know-how in the fabrication of
cutting- edge photomasks.
16-2013
Photronics, Inc.
Pete Broadbent, 203-775-9000
Vice President,
Investor Relations & Marketing
pbroadbent@photronics.com
Source: Photronics, Inc.
News Provided by Acquire Media
