BROOKFIELD, USA: Photronics Inc., a leader in supplying innovative imaging technology solutions for the global electronics industry, announced that it is closing its IC photomask manufacturing facility in Shanghai, China. The closure is consistent with Photronics strategy to reduce costs and lower its operational breakeven point.
In connection with the announced closure, Photronics expects to record an after tax charge of approximately $10 million to $14 million in fiscal 2009. Approximately 90 percent of the total charges will be attributed to non-cash items.
The company also estimates that 75 employees will be affected by the closure. Due to the ability to service customers from other Photronics' locations, the company expects minimal, if any revenue impact.
"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" explained Constantine S. Macricostas, Photronics' chairman and CEO.
"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" concluded Macricostas.
After the closure, Photronics will have nine global manufacturing facilities with four located within Asia. The remaining Asian locations include Korea, Singapore, and two sites in Taiwan. Once completed, the xompany expects to realize annual savings ranging from $4 to $5 million.
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 ICs, 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.
Showing posts with label Photronics. Show all posts
Showing posts with label Photronics. Show all posts
Thursday, 9 July 2009
Monday, 1 June 2009
TFT-LCD photomask market revenue jumps in 2008
NEW TRIPOLI, USA: LG Micron vaulted to the lead on the heals of LG Display’s growth, according to the report: The TFT-LCD Photomask Market, recently published by The Information Network.
LG Micron took the lead in the market with a 29.3 percent share, dethroning perennial leader Hoya in 2008. LG Micron supplies photomasks to LG Display, also part of the LG Group. Photronics’ market share for CY2008 increased to 18.5 percent from a 16.5 percent share the year earlier. It is interesting to note that Photronics is a US-based company and there is practically no LCD industry in the US.
Revenues for 2008 grew 16.4 percent while unit shipments increased 4.1 percent. The high growth is attributed to the higher prices of photomasks for 8th generation TFT-LCD plants.
“Driving the photomask market are a generation-shift to bigger glass plates and a design-rule cycle of panel technology that changes every 12 months,” notes Dr. Robert N. Castellano, President of The Information Network. “Right now, there seems to be a surplus of panels and excess production capacity for photomasks relative to demand. The downward pressure on prices should continue through this year.”
Demand for LCD panels was weak throughout the fourth quarter 2008 as panel manufacturers significantly curtailed output and overseas panel manufacturers reduced, postponed or cancelled plans for new manufacturing lines. These severe conditions continued during the first quarter 2009. Although plant utilization rates at panel manufacturers in Taiwan and South Korea recovered gradually demand has still not recovered completely.
The photomask industry also is experiencing sluggish demand for all photomasks, including photomasks for new lines, mass production and development, and intensified competition has resulted in significant unit price reductions.
Faced with these difficult circumstances, The Information Network is forecasting unit shipments to decrease 15.5 percent in 2009.
LG Micron took the lead in the market with a 29.3 percent share, dethroning perennial leader Hoya in 2008. LG Micron supplies photomasks to LG Display, also part of the LG Group. Photronics’ market share for CY2008 increased to 18.5 percent from a 16.5 percent share the year earlier. It is interesting to note that Photronics is a US-based company and there is practically no LCD industry in the US.
Revenues for 2008 grew 16.4 percent while unit shipments increased 4.1 percent. The high growth is attributed to the higher prices of photomasks for 8th generation TFT-LCD plants.
“Driving the photomask market are a generation-shift to bigger glass plates and a design-rule cycle of panel technology that changes every 12 months,” notes Dr. Robert N. Castellano, President of The Information Network. “Right now, there seems to be a surplus of panels and excess production capacity for photomasks relative to demand. The downward pressure on prices should continue through this year.”
Demand for LCD panels was weak throughout the fourth quarter 2008 as panel manufacturers significantly curtailed output and overseas panel manufacturers reduced, postponed or cancelled plans for new manufacturing lines. These severe conditions continued during the first quarter 2009. Although plant utilization rates at panel manufacturers in Taiwan and South Korea recovered gradually demand has still not recovered completely.
The photomask industry also is experiencing sluggish demand for all photomasks, including photomasks for new lines, mass production and development, and intensified competition has resulted in significant unit price reductions.
Faced with these difficult circumstances, The Information Network is forecasting unit shipments to decrease 15.5 percent in 2009.
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