DNP and Photronics to Establish Semiconductor Photomask JV in China

Dai Nippon Printing Co., Ltd. (DNP) and Photronics Inc., CT, (Photronics) will establish a semiconductor photomask manufacturing and sales joint venture (JV) in China.

[JV Objective]

In the semiconductor market, China is expected to continue to see major growth in the future, and it is forecast that by 2020 Chinese semiconductor production capacity will account for approximately 20% of global capacity. Against this backdrop, the supply of photomasks, an important component in semi-conductor manufacturing, are seeing increased needs from China-based semiconductor manufacturers for shorter lead times and stable supply driven by locally-based production.
In 2014, the JV partners established, and have since operated, a semi-conductor photomask manufacturing and sales JV in Taiwan. In this latest development, it has been decided to establish a China-based JV based on local production in order to provide an accurate response to expanding Chinese demand. Investment in the China-based JV is planned at US$ 160 million over the next five years, and a new plant will be built in Xiamen City in Fujian Province to supply semiconductor photomasks.

[Merger summary]

1. Merger schedule

Contract execution date	May 16, 2017
Date contract comes into effect	October 2017 (scheduled)

2. JV summary

Company name	Photronics DNP Mask Corporation Xiamen (PDMCX)
Location	Xiamen City, Fujian Province, China
Business contents	China-based semiconductor photomask manufacturing and sales-related business
Major shareholders and equity stakes	Photronics 50.01%, DNP49.99% The new company will become a consolidated subsidiary of Photronics and a DNP affiliated company accounted for by the equity-method

[Outlook]

The JV partners will proceed with the various procedures for the establishment of the new JV. The contract will come into effect by October 2017, and volume production is planned to commence by December 2018.

* Product prices, specification and service contents mentioned in this news release are current as of the date of publication. They may be changed at any time without notice.