‘Growing Nationalism’ Spurring Chip Capacity Expansion: Photronics CEO
The financial performance of “nearly every company” in the semiconductor and display sectors “continues to improve,” and that bodes well for long-term photomask demand, said Photronics CEO Peter Kirlin on an earnings call Wednesday for fiscal Q3 ended Aug. 1.…
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Photronics supplies photomasks to panel makers in China, South Korea and Taiwan. Few can “ignore” the “growing nationalism that is spurring capacity buildup in multiple regions,” including the U.S. and Europe, said Kirlin. Leading business indicators “point to a boost in capital equipment spending by chip and panel makers that will require photomasks once installed,” he said. “All signs point to a prolonged period of market strength. This is truly a very positive period for the industry, for photomask demand and for Photronics.” Q3 was the second straight quarter of record revenue for Photronics, and “we expect another record quarter in Q4,” Kirlin said. Photronics is “encouraged by the macro trends driving robust design activity across the semiconductor industry,” said Chief Financial Officer John Gordon. The company is optimistic that current trends “will continue into 2022 and potentially beyond,” he said.