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

TOKYO (PROTEXT) - Toshiba Corporation and Dai Nippon PrintingCo., Ltd. (DNP) today announced an agreement for an alliance inthe development and manufacture of photomasks for semiconductors.Under its terms, the partners will promote broad cooperation thatwill allow Toshiba to enhance the efficiency of its semiconductoroperations and support DNP in expanding its photomask business. Photomasks are an essential element in the manufacture ofsemiconductors. They hold microscopic images of electroniccircuits on high precision quartz plates, and transfer them tosemiconductor wafers as integrated-circuit patterns. Theagreement brings together well-balanced partners. DNP hasachieved the production capabilities and cost-competitivenessrequired to take the leading share of the world market forphotomasks, while Toshiba has state-of-the-art technology that itcurrently reserves for in-house use. The agreement between the companies embraces three key points: a) Toshiba and DNP will together establish a manufacturingcompany, to which Toshiba will transfer its photomaskmanufacturing operations. During the first three years of theagreement, Toshiba will receive all photomasks manufactured bythe new company, via DNP. b) In March 2000, the partners will start joint development ofthe technologies necessary to manufacture next-generationphotomasks for semiconductors fabricated to the 0.13 microndesign 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 photomaskproduction capabilities and to enhance its overall photomaskoperations. The new alliance draws on and enhances the advantages of bothcompanies. Access to leading-edge and next-generationtechnologies will support DNP in promoting its photomask businessand securing continued market leadership. Working with DNP willbring Toshiba an input of resources for the development andproduction of photomasks for its own use, and add to the overallcost-effectiveness of its semiconductor operations. The new joint venture will be established in March 2000 andwill initially have 200 employees. It will be capitalized atapproximately 500 million yen. DNP will take a 65% interest inthe company, with Toshiba taking the rest. Production will belocated at Toshiba's Microelectronics Center in Kawasaki andIwate Toshiba Electronics Co., Ltd. in Iwate. The new company'ssenior management will be appointed shortly, and its registeredaddress will be announced in due course. Dai Nippon Printing (DNP) is the world's largest comprehensiveprinting company and the top vendor of high-tech photomasks,produced by applying fundamental printing techniques andtechnologies. DNP account for about 40% of Japan's photomaskmarket and 25% of the world market. DNP has 33,000 employees andits net sales in fiscal 1999 were over US$10 billion. Toshiba Corporation is a leader in information andcommunications systems, electronic components, consumer products,and power systems. The company's integration of these wide-ranging capabilities assures its position as an innovator inadvanced components, products, and systems. Toshiba has 198,000employees worldwide, and annual sales of over US$40 billion. otsOriginal Text Service: Toshiba Corporation Internet:http://www.newsaktuell.de Contact: Suzuki Midori of ToshibaCorporation, +81-3-3457-2105, or

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