Photronics Announces Joint Venture In Taiwan With Dai Nippon Printing

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.”

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