Photronics Announces Joint Venture in Taiwan with Dai Nippon Printing
Creates Largest Domestic Merchant Supplier of Leading-Edge Photomasks in
“Photronics DNP Mask Corporation” Combines DNP’s Logic Photomask Technology
and PSMC’s Memory Photomask Technology and Operating Scale
BROOKFIELD, Conn. -- November 20, 2013
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
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.
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.
Pete Broadbent, 203-775-9000
Vice President, Investor Relations & Marketing
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