Photomask firm halts manufacturing in Singapore

Photronics Inc. has restructured its operations in Asia by ceasing the production of photomasks in its Singapore facility, but will retain its customer service, data preparation and photomask repel services. Manufacturing activities for customers will be serviced at the company's other global photomask fabrication facilities, including Korea and Taiwan.

Photronics estimates that this action will allow them to save $3-$4 million annually. The company expects this streamlining will reduce headcount by about 60 and will have a minimal effect on revenues and that it will record a charge in fiscal 2012 not to exceed $2.5 million.

"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," commented Constantine S. Macricostas, CEO, Photronics.

"We are maintaining a strong customer focus in Singapore," added 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 U.S. and Europe."