DuPont Photomasks To Serve As Infineon Tech Supplier
ROUND ROCK, Texas -(Dow Jones)- DuPont Photomasks Inc. (DPMI) formed agreements with Infineon Technologies (NYSE: IFX - News) AG (IFX) as the German semiconductor systems company transitions out of photomask manufacturing.
In a press release Thursday, DuPont Photomasks said the companies signed a 10- year multimillion-dollar supply agreement and a purchase agreement and made plans with Advanced Micro Devices Inc. (AMD) to establish a facility in Dresden, Germany .
DuPont Photomasks plans to acquire photomask production equipment from Infineon's internal mask operations in Munich . DuPont Photomasks will use the equipment in various production facilities within its global network, including the Dresden site that should begin operation in late 2003.
The facility will develop and pilot-manufacture next-generation lithographic photomasks for exposing patterns on semiconductor (NasdaqNM: ONNN - News) silicon wafers, Munich -based Infineon said in a separate release.
Infineon, Advanced Micro Devices and DuPoint Photomasks are creating an equally owned venture, Advanced Mask Technology Center GmbH & Co ., co -located with a new commercial photomask production facility DuPont Photomasks will establish in Dresden as a separate entity.
DuPont Photomasks plans to invest about $155 million in the next five years at the Dresden facility, at which the company expects to employ almost 200 people at full production. The Dresden facility, along with other facilities in DuPont Photomasks' manufacturing network, will go toward meeting the terms of the global supply agreement with Infineon.
The supply agreement includes Infineon's affiliates, joint-venture alliances and fabs such as ProMOS and UMCi.
In consideration for certain photomask production assets acquired within 18 months and the 10-year supply agreement, DuPont Photomasks will pay Infineon about $53 million over seven years and intends to buy additional photomask production assets for $28 million paid out over four years.
DuPont Photomasks anticipates the transaction adding about 10 cents a share to fiscal 2003 earnings and about 35 cents a share to fiscal 2004 earnings.
A Thomson Financial/First Call survey of seven analysts produced a mean earnings estimate of 95 cents a share for fiscal 2003; the service didn't provide a fiscal 2004 est imate.
DuPont Photomasks expects the supply agreement to add $14 million to revenue in fiscal 2003 and $42 million in fiscal 2004. As DuPont Photomasks' new facility in Dresden ramps to volume production in the middle of fiscal 2004, Infineon plans to fully exit the internal production of photomasks and use DuPont Photomasks as its commercial supplier.
Infineon's current photomask demand is $50 million to $60 million a year.
Shares of DuPont Photomasks closed Wednesday at $40.34, up 84 cents, in Nasdaq trading. New York Stock Exchange-listed shares of Infineon closed at $18.09, down 6 cents. NYSE-listed shares of Advanced Micro closed at $12.52, up 11 cents.
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