Photronics Expands Advanced Mask Production in Texas and South Korea
Photronics is increasing its focus on advanced photomask production as part of an ongoing shift toward higher-end manufacturing. In the most recent quarter, high-end semiconductor products accounted for a record 44% of Photronics' semiconductor business. The company is upgrading facilities in Allen, Texas, to support 65-nanometer production and expanding its South Korean site to handle 8-nanometer masks by early next year. The investments are intended to align with U.S. efforts to reshore semiconductor manufacturing while freeing up capacity at the Boise facility for more advanced work. Photronics is currently in a high capital-spending phase, but near-term conditions appear improving as delayed chip designs resume. Management expects flat or slightly higher revenue next quarter and anticipates gross margins remaining stable around 33%. Photomasks are essential to semiconductor manufacturing, with each design requiring more layers at advanced nodes—leading to increased unit volumes and average selling prices per mask set.
Topics: AI demand capacity expansion photomasks U.S. semiconductor reshoring