The mask making business is getting real cut throat with the 2 survivors being PLAB and DPMI. I do not want to leave out MASK but presently they are not marketshare equals to DPMI and PLAB. In a certain light, mask making (reticles) is a commodity business where you must constantly keep an eye on costs, cost efficiencies, margin pressures, etal. The high cost of the equipment used to make these masks and their relatively low processing throughput is one of the major costs associated with producing those masks and reticles. With that said, PLAB and DPMI are constantly working on programs to increase throughput and lower overall costs of manufacturing their masks and reticles. The Ultrabeam system is an attempt by PLAB to address these goals.
I am fairly certain that PLAB and DPMI have upgraded their existing systems to the latest and greatest versions of the ETEC hardware and software upgrades. The Ultrabeam system presents an opportunity to provide a more cost effective manufacturing process and at least meet the technological capabilities of the ETEC system. Granted, PLAB is taking a chance. The risk/reward ratio must be favorable enough for them to break out of the mold here. If they are successful, they will be able to demonstrate reduced costs and improve margins during a time when the their industry is hurting. Purchase of any additional systems will depend on the industry recovery and the comparative performance of the Ultrabeam. PLAB looked and purchased it based on these premises and it remains to be seen if the promises have been delivered.
From a business perspective, it was probably a mediocre move since they have throttled back on their recent expansion in the Pacific Northwest and can handle all its needs with the existing facilities. The Ultrabeam may not get the workout and intensive testing it needs to prove it was the right way to go. PLAB will have time, though, to work out any bugs and have UTEK work with them to attain the agreed upon performance goals. Who knows, they might have already met those goals<GGG>.
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