Toppan Photomasks, Inc. (TPI), the world's preferred global partner for photomasks, announced today that additional investment will be made in new, leading-edge equipment for mass production of advanced photomasks at their existing Toppan Photomasks Company Limited, Shanghai (TPCS) facility. The TPCS plant is a subsidiary of Toppan Photomasks Inc. manufacturing photomasks for semiconductors. The new, leading-edge equipment is scheduled to begin installation in April 2018 with initial production starting for 65/55nm photomasks. The installation of the new, leading-edge equipment will continue, step-by-step, with completion scheduled for the autumn of 2018 and fabrication of 28nm and 14nm photomasks scheduled to begin during the first half of 2019.

The global semiconductor market continues to grow with higher functionalities and miniaturization of information devices such as smartphones and Internet of Things (IoT) equipment, where the estimated market size is expected to be about 50 trillion yen in 2018. In China, as well as other markets, many semiconductor manufacturers are building additional production capacity creating strong demand for advanced photomasks. Meeting this demand requires a stable supply system based near the local semiconductor production.

"The decision to expand our investment in the Shanghai TPCS facility was made to meet the growing demand of the local Chinese market," said Tetsuro Ueki, Director of Toppan Printing Co., Ltd., Head of Electronics Division. "Toppan Printing continues to undertake investments that will strengthen our leading-edge photomask production in China, and combine with the strengths of our production bases in Japan and Taiwan. We estimate our market potential will grow to about 4.5 billion yen for FY2020 in the Asian market."

"By introducing leading-edge equipment into TPCS we are establishing in China production capability for fabricating advanced products along with our existing standard products, as well as, repellicle operations that require a short-time delivery," said Terry Russell, President of TPCS. "We also continue to produce next-generation semiconductor photomasks for 10nm and beyond, as well as develop cutting-edge products, such as EUV photomasks expected to be adopted from 7nm generation. We understand that these continuing investments are required in order to maintain our high-level of service to our customers and our technical competitive advantages in the booming, worldwide semiconductor-related markets," said Michael G. Hadsell, Chief Executive Officer of Toppan Photomasks.

Since Toppan Printing first entered into the photomask business in 1961, it has been the industry leader because of its commitment to leading-edge technologies and supply capabilities. In China, TPCS launched production in 1995 and has maintained its technology and market share lead since that time.

About Toppan Photomasks

Toppan Photomasks, Inc. is a wholly owned subsidiary of Toppan Printing Co., Ltd. a diversified global company with revenue in excess of US$14 billion in 2016. Toppan Photomasks is part of the Toppan Group of photomask companies. As the world's premier photomask provider, the Toppan Group operates the industry's most advanced and largest network of manufacturing facilities and offers a comprehensive range of photomask technologies and research and development capabilities to meet the increasingly sophisticated and divergent product-and service requirements of the global semiconductor industry. Toppan Photomasks is headquartered in Round Rock, Texas. For more information, visit www.photomask.com.

About Toppan Printing's Photomask Business

Toppan Printing is the world's premier photomask manufacturer. The company supports the global semiconductor industry, from the initial launch of the semiconductor manufacturing process through commercial production, by providing state-of-the-art photomask technology. Toppan is the only global photomask manufacturer providing the highest quality products in a timely manner to customers across Japan, the United States, Europe and Asia. For more information, visit www.toppan.co.jp.

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