Photronics Inc., a supplier of technology solutions for the global electronics industry, has announced an agreement with Dai Nippon Printing Co. Ltd. (DNP) to form a joint venture focused on serving semiconductor manufacturers in China. The agreement states that a subsidiary of DNP will acquire 49.99 percent of Photronics' wholly foreign owned entity in Xiamen, China, with Photronics maintaining an ownership of 50.01 percent. The joint venture's financial statements will be included in the consolidated financial statements of Photronics. The joint venture, which will be called Photronics DNP Mask Corporation Xiamen (PDMCX), is subject to regulatory approvals and customary closing conditions and is expected to close by the end of Photronics' fiscal year 2017. PDMCX will include the state-of-the-art photomask manufacturing facility currently under construction in Xiamen. The facility, which is scheduled to begin production by the end of 2018, will feature advanced process technology, experienced personnel and high-end equipment. It aims to benefit through shared resources, investment and collaboration between PDMC, Photronics and DNP. Each party will contribute cash in proportion to their ownership to fund the previously announced $160 million investment over five years. "This combination is a testament to our great success in Taiwan and a strong desire by each party to extend this winning partnership into China for the benefit of local customers and the development of industry infrastructure," said Peter Kirlin, CEO of Photronics. "The growing importance of the China semiconductor market requires that we bring superior global resources and a broad spectrum of cutting edge technologies and methods in order to best ensure our customers' success. The formation of this joint venture provides beneficial critical mass to accelerate meeting those objectives. China customers will benefit through local access to advanced manufacturing processes, industry leading technology, and world-class customer support to improve their time to market and yield ramp. The joint venture also provides an optimal solution for shareholders as we are able to improve capital efficiency while offering advanced process technology and a broad product portfolio." Photronics is a manufacture of photomasks. DNP is a provider of publishing solutions, marketing communications, information security and imaging communications.