Photronics to streamline Singapore manufacturing

BROOKFIELD, USA: Photronics Inc., a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, is streamlining its operating infrastructure in Asia by ceasing the manufacture of semiconductor photomasks at its Singapore facility.

Manufacturing activities for those customers previously serviced at Photronics’ Singapore facility will be serviced at the Company's other global photomask fabrication facilities, including Korea and Taiwan. The company will maintain customer service, data preparation and photomask repel services at the Singapore facility. Photronics estimates that this action will result in an annualized cost savings of approximately $3 to $4 million, the majority of which will be cash.

The company expects this restructuring will have a minimal effect on revenues and that it will record a charge in Fiscal 2012 not to exceed $2.5 million. Photronics will provide further financial details relating to the manufacturing change during its Fourth Quarter conference call on Wednesday, December 7, 2011. It estimates that the manufacturing streamlining will reduce headcount by approximately 60 positions.

Constantine S. Macricostas, founder, chairman and CEO, said: “The Asian semiconductor landscape continues to change and we are aligning our manufacturing facilities to meet current demand and improve our cost structure. In addition to improving consolidated margins, this streamlining will continue to position us as highly competitive in the market.”

“We are maintaining a strong customer focus in Singapore,” continued Macricostas. “Photronics is fully committed to providing high quality photomasks and services at the best value to our customers through the efficient utilization of our manufacturing locations across Asia, the US and Europe. We intend to maintain a customer support, data preparation and repel services center in Singapore to ensure seamless customer service and strategic access to the Photronics global network. Finally, we would like to acknowledge the dedication and efforts of our Singapore employees and thank them for their contributions to the company."