Galsi's questions to Photronics Inc (PLAB) leadership • Q1 2025
Question
Galsi of Singular Research asked about the U.S. IC capacity expansion, seeking clarity on the portion tied to long-term agreements, AI chip demand, and the CHIPS Act versus organic demand. He also questioned the demand trends for advanced nodes related to AI, the outlook for the auto and industrial sectors, the potential impact of geopolitical issues on H2 pricing, the R&D cost forecast, and the top two risks for 2025.
Answer
CFO Eric Rivera and CTO Christopher Progler clarified that the U.S. expansion is driven by organic demand and customer commitments, not directly dependent on CHIPS Act funding. Progler noted that AI's impact is mostly indirect through support chips and memory demand, but declined to quantify its future revenue contribution. Both he and CEO KangJyh Lee described the auto and industrial markets as persistently weak. Rivera stated the company is cautious on the second half due to macroeconomic and geopolitical risks, which he identified as the top two concerns for 2025. He expects OpEx to remain around 10% of revenue.