Photronics (PLAB) outlined its strategy to expand into advanced semiconductor nodes during a presentation at the 17th Annual Midwest IDEAS Conference on August 27, 2026. The company highlighted plans to upgrade its Texas facility within one to two months, moving from 180/130nm to 65nm, and to expand its Korean facility over the next year, advancing from 40nm bulk production to 8nm.
The company reported a gross margin of 33% in its latest quarter, up from a historical range of low- to mid-20%, and maintained $673 million in total cash, of which $504 million is restricted within joint ventures in China and Taiwan. Photronics owns 50.01% of both its Taiwan and China ventures, with about 70% of net income flowing to shareholders after ownership splits. The company’s trailing 12-month revenue stands at approximately $850 million to $900 million, with semiconductor photomask revenue accounting for about 75% and display revenue for 25%.
Photronics operates 11 clean room facilities globally with roughly 2,000 employees, including three in the U.S., three in Taiwan, two in China, and one in Korea. The company’s U.S. operations include a headquarters in Connecticut and a Boise facility capable of handling down to 7nm, with efforts underway to reach 4nm. The Texas upgrade marks a shift toward mid-range nodes, while the Korean expansion targets high-end applications.
The company’s capital expenditure is expected to remain above 15% of revenue through fiscal 2027, reflecting ongoing investments in advanced-node capacity. Photronics holds about 10% of the overall photomask market and 28% of the display photomask segment. Node economics remain highly sensitive to complexity, with mask set ASPs ranging from $50,000 at 90nm to $10 million to $20 million at 5nm and below. A full EUV program could cost approximately $300 million, according to the company’s estimates.
Looking ahead, Photronics guided revenue and gross margin to be flat to slightly higher sequentially in the next quarter. The company’s stock has declined about 19% over the past six months but remains up 26% over the past year.
