Online information source for semiconductor professionals

Photronics’ mask shop in China to close as part of cost reduction program

09 July 2009 | By Mark Osborne | News > Lithography

Popular articles

New Product: Applied Materials new EUV reticle etch system provides nanometer-level accuracy - 19 September 2011

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

New Product: ASML Brion‚??s Tachyon MB-SRAF enables OPC-like compute times - 19 September 2011

Loss-making photomask manufacturer Photronics is closing its only mask shop in China with the loss of approximately 75 jobs. The move is part of Photronics' efforts to lower its operational breakeven point. Mask shops in other Asian locations including Korea, Singapore and two sites in Taiwan will supply customers in China, the company said. In October 2008, Photronics announced the closure of its mask shop in the UK and recently re-negotiated its lease agreement at its joint venture mask shop with Micron Technology.

"While we remain extremely optimistic in our ability to continue growing our business within Asia, the integrated circuit mask market in China is not materializing as we had hoped," commented Constantine S. Macricostas, Photronics' chairman and chief executive officer. "Unfortunately China’s photomask market remains relatively small and we do not foresee a viable path to profitability within an acceptable timeframe. To retain our cost competitiveness we must align our manufacturing capacity with end-market demand."

The closure is expected to realize annual savings ranging from $4 to $5 million. Photronics expects to record an after-tax charge of between $10 million to $14 million in fiscal 2009.

Related articles

Photronics to close UK photomask shop - 21 October 2008

Analog Devices honors Photronics with Supplier Excellence Award - 28 April 2008

Team of companies to collaborate on making photomasks more design friendly - 09 July 2009

Photronics restructures NanoFab agreement with Micron - 22 May 2009

Michael J. Luttati resigns as Photronics CEO - 22 July 2008

Reader comments

No comments yet!

Post your comment

Please enter the word you see in the image below: