Toppan Printing Enters into New Photomask Process Development Agreement with IBM

New Collaboration to Include Early Establishment of 22nm Photomask
Process
TOKYO--(Business Wire)--
Toppan Printing Co., Ltd. (Toppan Printing; Head office:
Chiyoda-ku, Tokyo; President & CEO: Naoki Adachi) today announced that
it has entered into a new development agreement with IBM that covers
the last phase of 32nm photomask process development, and all phases
of 22nm photomask process development. This joint development will
take place at IBM's Burlington photomask facility in Essex Junction,
VT., starting in June 2008.

Photomasks are used to transfer semiconductor chip circuits onto a
silicon wafer, and this photolithography process is a critical first
step in semiconductor production. Semiconductors have become
increasingly sophisticated due to growing demand for
telecommunications devices and highly complex and multifunctional
digital consumer electronic products. Therefore, it is vital that
semiconductor and photomask manufacturers work closely together to
develop the advanced lithography technologies that will be needed to
produce future-generation semiconductor chips. In order to keep pace
with this changing technological environment, Toppan Printing and IBM
started joint development of photomasks for 45nm semiconductors in
2005, and expanded the scope of their activities to include 32nm
development in 2007.

Toppan Printing has developed a 32nm photomask process at its
facility in Asaka, Japan. As part of the activities under the new
development agreement, Toppan Printing will work with IBM to integrate
the Toppan Printing process into the 32nm photomask process that
Toppan Printing and IBM will jointly develop, thus potentially
optimizing the performance of the jointly developed process.

As for the 22nm semiconductor generation, the industry is
considering implementation of many new technologies such as EUV
lithography and nano-imprint, but many technical issues remain
outstanding. So IBM has determined to pursue with Toppan Printing the
joint development of a 22nm photomask process by technical innovation
of ArF immersion lithography, the current mainstream technology for
the manufacture of 32nm photomasks.

IBM is known as an innovative semiconductor manufacturer always
leading the industry in semiconductor process technology, material
development and implementation. The photomask joint development
efforts of Toppan Printing and IBM have aided the wafer process
development conducted by IBM and certain of its wafer process
development collaborators in East Fishkill, NY. Specifically, Toppan
Printing and IBM have manufactured and provided 45nm and 32nm
photomasks in support of 45nm and 32nm wafer process development
activities, and expect as well to manufacture and provide 22nm
photomasks in support of 22nm wafer process development activities.

"This newest process development agreement with Toppan Printing
builds upon the success that our two companies have enjoyed while
working together over the past several years. This newest agreement
will help ensure we can continue to deliver innovative chip
applications for IBM systems and our OEM semiconductor clients," said
Michael Cadigan, General Manager, IBM Semiconductor Solutions. "This
collaborative effort builds upon our joint progress at 45nm and 32nm
and sets us on a path to deliver the photomasks needed for
next-generation chip manufacturing production. IBM is very proud of
its relationship with Toppan Printing."

"It is a great pleasure for us to enter into a new joint
development agreement with IBM, the world's most advanced
semiconductor processing company, to the coming generation of 22nm,"
said Naoki Adachi, president of Toppan Printing. "During the past
three years of joint work, we have been nurturing a strong
collaboration as well as a highly sophisticated technical development
capability. We believe this joint initiative will place IBM and Toppan
Printing at the forefront of advanced photomask technology
development, and thus will enable us to contribute to the
technological innovation in the world's semiconductor industry. Toppan
Printing is the only photomask manufacturer in the world with the
capability of providing high-quality photomask products in a timely
manner in the U.S., Europe, Japan and other Asian countries. This
joint development in cooperation with IBM will help Toppan Printing
become the world's premier photomask manufacturer at 22nm as well."

About Toppan Printing's Photomask Business

Toppan Printing is the world's premier photomask manufacturer. The
company supports the global semiconductor industry, from the initial
launch of the semiconductor manufacturing process through commercial
production, by providing state-of-the-art photomask technology. Toppan
is the only global photomask manufacturer providing the highest
quality products in a timely manner to customers across Japan, the
United States, Europe and Asia. For more information, visit
www.toppan.co.jp.

Loomis Group
Jennifer Anselmo, 415-882-9494
anselmoj@loomisgroup.com
or
Jason Isberg, 415-882-9494
isbergj@loomisgroup.com

Copyright Business Wire 2008