Exhibit No. 99.3
For Further Information:
At The Company
Michael W. McCarthy
Director - Investor Relations & Corporate Communications
(203)775-9000
mmccarthy@brk.photronics.com
www.photronics.com
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FOR IMMEDIATE RELEASE
March 14, 2000
Photronics Broadens Photomask Manufacturing Presence in Asia
Singapore and Taiwan Facilities Enable Comprehensive Foundry Solution
JUPITER, Florida March 14, 2000 -- Photronics, Inc. (Nasdaq:PLAB), the
world's leading photomask supplier, today announced additional details of its
Asian manufacturing and customer service strategy which it believes will
increase the Company's visibility and market share in this rapidly growing
region. Expansion in Asia, a cornerstone of Photronics' future growth
strategy, was recently brought to the forefront of the Company's operating
activities when it announced acquiring equity ownership of Precision
Semiconductor Mask Corporation (PSMC) located in Taiwan. PSMC, a leading
photomask technology and service provider qualified at Taiwan Semiconductor
Manufacturing Corporation (TSMC) and United Microelectronics Corporation (UMC),
will become a subsidiary of Photronics as a result of Photronics' 51% majority
interest. This latest addition to Photronics' global manufacturing network
will enable the Company to leverage its strategic supplier relationships with
European and North American-based integrated device manufactures (IDM's) and
fabless semiconductor designers into a comprehensive, full service photomask
technology solution for foundry customers.
The Asian photomask market, which supports semiconductor manufacturing
activities in China, Korea, Taiwan, and Singapore/Southeast Asia, is estimated
to exceed $550 million in calendar 2000 according to Photronics. The rapid
growth of this market, particularly in Singapore and Taiwan, results from the
broad based adoption of wafer outsourcing strategies. Large and established
IDM's, as well as small fabless semiconductor design companies, will continue
to benefit from the foundry industry's movement toward wafer processing
technology leadership.
Photronics' Singapore facility, having commenced operations in August
1996, remains uniquely positioned as the only photomask supplier in the
Southeast Asian region. This site has undergone significant transformation to
meet the more demanding requirements of its customers, including a quadrupling
in capacity, as well as enhancements to its technological capability.
Additionally new growth opportunities are developing as foundry activity in
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Photronics Broadens Photomask Manufacturing Presence in Asia...........Page Two
Malaysia finds new strength. Planned foundry capacity investments are expected
to begin ramping in Malaysia toward the end of this year. The Korean market,
which has seen the majority of its manufacturing capacity allocated toward
memory products, has also begun to produce an increasing amount of logic-based
semiconductors, and is thus expected to see its photomask unit demand increase.
Coming into this year, industry analysts expect that a foundry partner
processed 10% of all processed silicon. This estimate increases to more than
45% by 2010, making the foundry market one of the single largest strategic
consumers of photomask manufacturing technology and services in the world.
James R. Northup, President stated, "The real benefit to PSMC and
Photronics comes from being able to serve a larger customer base requiring a
local source of photomask technology and support from a regionally located and
qualified supplier/partner. Our customers' accelerating technology
requirements, together with the evolving semiconductor fabrication model based
on outsourced manufacturing strategies has created a unique growth situation
for the Asian foundries, and those companies strategically positioned to
support them. In addition to providing a comprehensive foundry photomask
supply solution, we have an opportunity to build on PSMC's and Photronics'
emerging reputations in Japan, as companies in this region increasingly look
toward their merchant photomask suppliers to play a leading role in addressing
the challenges of sub-0.18 micron lithography."
The substantial technological capability developed by PSMC, together with
its advanced photomask technology qualifications at TSMC and UMC, complements
Photronics' strategic position as Southeast Asia's foremost photomask supplier.
By leveraging its relationships with European and North American customers
utilizing wafer foundries, PSMC will increase its overall capacity utilization
and should nearly double Photronics' share of the Asian photomask market
(excluding Japan) by year end.
PSMC's facility, which includes 21,600 square feet of class 1 clean room
space, is ideally located in Taiwan's Hsinchu Science Park in Taiwan, enabling
it to satisfy many of the Company's customers' time to market requirements.
The site's 145 employees, almost half of which have engineering
backgrounds, are serving the market with Etec, Hitachi and JOEL lithography
systems, which are supported by leading inspection tools from KLA-Tencor and
repair systems from Seiko. Mr. Northup added, "In light of Taiwan's rapid
emergence as a wafer process technology leader, Photronics will bring an ALTA
3500 system to the facility by this summer. We are excited about the
opportunity to combine PSMC's well deserved reputation for differentiating
technology together with our own Sub-Wavelength Reticle Solutions' products in
order to expand our leadership role in Asia's growing demand for advanced wafer
lithography process solutions."
Photronics' new presence in Taiwan also greatly improves its ability to
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Photronics Broadens Photomask Manufacturing Presence in Asia.....Page Three
service Japanese semiconductor manufacturers and North American integrated
device manufacturers with facilities in Japan. The Company's position in
Taiwan increases its visibility among semiconductor designers now utilizing the
advanced wafer process technologies available in today's deep sub-micron
foundry fabs. In addition, it improves Photronics' ability to supply photomask
technology and services directly into Japan, a market Photronics estimates will
approach $1.0 billion this year. Commenting on Japanese growth opportunities,
Mr. Northup stated, "The team at PSMC has done an outstanding job qualifying
at every advanced memory wafer fab in Taiwan. This robust technological
capability will enable us to further increase our visibility in a market driven
by demanding memory technologies."
A conference call replay with the investment community and the media can
be accessed by logging onto Photronics' web site at www.photronics.com and
navigating to the Investor Relations page. It will be archived for instant
replay access until 5:00 p.m. Eastern Standard Time on Friday, March 17, 2000.
# # #
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, photomasks are
used to transfer circuit patterns onto semiconductor wafers during the
fabrication of integrated circuits. They are produced in accordance with
circuit 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.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, the matters discussed in this news
release that may be considered forward-looking statements may be subject to
certain risks and uncertainties that could cause the actual results to differ
materially from those projected, including uncertainties in the market,
pricing competition, procurement and manufacturing efficiencies, and other
risks detailed from time to time in the Company's SEC reports. The Company
assumes no obligation to update the information in this release.