Photronics announced that it will stop 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.

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 streamlining its operating
infrastructure in Asia 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,”
said Constantine S. Macricostas, founder, chairman and chief executive officer
of Photronics.

 

The company estimates that the manufacturing streamlining
will reduce headcount by approximately 60 positions. The company is maintaining
a strong customer focus in Singapore. The intent is 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.

 

By Telecomlead.com Team
[email protected]