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Toshiba and Dai Nippon Printing Enter Partnership for Production and Development of Semiconductor Photomasks

2 December, 1999


Toshiba Corporation
Dai Nippon Printing Co., Ltd.

Tokyo--Toshiba Corporation and Dai Nippon Printing Co., Ltd. (DNP) today announced an agreement for an alliance in the development and manufacture of photomasks for semiconductors. Under its terms, the partners will promote broad cooperation that will allow Toshiba to enhance the efficiency of its semiconductor operations and support DNP in expanding its photomask business.

Photomasks are an essential element in the manufacture of semiconductors. They hold microscopic images of electronic circuits on high precision quartz plates, and transfer them to semiconductor wafers as integrated-circuit patterns. The agreement brings together well-balanced partners. DNP has achieved the production capabilities and cost-competitiveness required to take the leading share of the world market for photomasks, while Toshiba has state-of-the-art technology that it currently reserves for in-house use.

The agreement between the companies embraces three key points:

a)Toshiba and DNP will together establish a manufacturing company, to which Toshiba will transfer its photomask manufacturing operations. During the first three year of the agreement, Toshiba will receive all photomasks manufactured by the new company, via DNP.

b)In March 2000, the partners will start joint development of the technologies necessary to manufacture next-generation photomasks for semiconductors fabricated to the 0.13 micron design rule and beyond.

c)Toshiba will license to DNP its know-how in 0.15 micron-class photomasks. DNP will use this to reinforce its photomask production capabilities and to enhance its overall photomask operations.

The new alliance draws on and enhances the advantages of both companies. Access to leading-edge and next-generation technologies will support DNP in promoting its photomask business and securing continued market leadership. Working with DNP will bring Toshiba an input of resources for the development and production of photomasks for its own use, and add to the overall cost-effectiveness of its semiconductor operations.

The new joint venture will be established in March 2000 and will initially have 200 employees. It will be capitalized at approximately 500 million yen. DNP will take a 65% interest in the company, with Toshiba taking the rest. Production will be located at Toshiba's Microelectronics Center in Kawasaki and Iwate Toshiba Electronics Co., Ltd. in Iwate. The new company's senior management will be appointed shortly, and its registered address will be announced in due course.

Dai Nippon Printing (DNP) is the world's largest comprehensive printing company and the top vendor of high-tech photomasks, produced by applying fundamental printing techniques and technologies. DNP account for about 40% of Japan's photomask market and 25% of the world market. DNP has 33,000 employees and its net sales in fiscal 1999 were over US$10 billion.

Toshiba Corporation is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as an innovator in advanced components, products, and systems. Toshiba has 198,000 employees worldwide, and annual sales of over US$40 billion.


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