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TMCNet:  Orbotech to Support CEC Panda's New Gen 8.5 Fab in a $55 Million Deal

[July 24, 2014]

Orbotech to Support CEC Panda's New Gen 8.5 Fab in a $55 Million Deal

YAVNE, Israel --(Business Wire)--

Orbotech Ltd. (NASDAQ: ORBK) Orbotech Ltd., a global leader in advanced technology production solutions for flat panel display ("FPD") manufacturing, announced today that TFT LCD panel maker Nanjing CEC Panda LCD Technology Co., Ltd. (a China Electronics Corp. company) has selected Orbotech as the inspection, testing and repair equipment vendor for its new Gen 8.5 fab in Nanjing, China. During the first and second quarters of 2014, Nanjing CEC Panda placed orders totaling approximately $55 million for Orbotech's newly introduced systems. Installation is expected to commence in the fourth quarter of 2014 and to continue throughout the first half of 2015.

Orbotech was chosen for the high-performance capabilities of its recently launched inspection, repair and testing products, which are able to support the complex requirements of CEC Panda. In its new Gen 8.5 fab, which is slated to be one of the most advanced in the world, CEC Panda has decided to install:

  • The Orbotech Quantum (News - Alert)TM automated optical inspection ("AOI") system - the industry's first system to offer multi-modal detection capabilities for performing multiple inspections and detecting previously undetectable defects, enabling production of superior quality products at higher yields.
  • Orbotech's Process Saver - with its highly specialized short pulse laser and FSM (fast steering mirror) technology, enables small devices to be repaired and restored to full functionality, thereby improving yield and minimizing product costs.
  • The Array Checker 6088 - the latest model of Orbotech's leading array testing products, designed to support fabs that manufacture a wide range of products by offering a powerful combination of resolution and speed using a new large area VIOS (voltage imaging optical system) that contains a custom-designed high resolution sensor.

Mr. Sun Xue Jun., Vice President at CEC Panda, stated: "Choosing Orbotech as our testing and repair solutions technology provider was simply the logical choice given the company's unmatched reputation and over 30 years experience developing the industry's leading technologies. Orbotech was able to meet the high demands required of our advanced TFT applications."

"Nanjing CEC Panda has selected Orbotech as its vendor-of-choice and has opted for three of Orbotech's most innovative products in AOI, test and repair", stated Gil Oron, Orbotech's FPD Division President. "Through intense development, these powerful new products have been optimized to support the future requirements of this rapidly evolving industry and should vastly improve yield while reducing cost-of-ownership." He added: "We are pleased to have been chosen to play a key role in CEC Panda's upcoming Gen 8.5 fab and look forward to continued strengthening of our partnership in the years to come."

About CEC Panda

Established in July 2012, Nanjing CEC Panda LCD Technology Co., Ltd, is setting up a G8.5 production line for CEC Panda at a total investment value of RMB 29.15 billion. Of the registered capital of RMB 17.5 billion, China Electronics Corporation (CEC) holds 38.082% of its share, while CEC Panda Group 17.143%, Nanjing New Industrialization Investment (Group) Co., Ltd. 34.257%, Nanjing New Port Development Corporation 2%, Sharp (News - Alert) 7.718%, and AOC 0.8%, together hold the remaining shares. The project was initiated in July 2013. Following a construction period of 20 months and a ramp up period of 9 months, output is expected to reach a production capacity of 60,000 substrates (2200mm × 2500mm) per month, with expansion potential of up to 75,000 substrates per month. The G8.5 production line incorporates some of the latest cutting-edge technologies including metallic oxide TFT (IGZO) technology, 4K2K (UHD) technology, touch screen technology, ultra narrow bezel technology and more. Products being manufactured include panels and modules for: 4.7"-7.0" ultra-high resolution smart phones, 7.0"~10.1" ultra-high resolution tablet PCs, 10.1"~15.6" high-end laptops (all offering higher resolution than Full HD) and 32"~80" UHD TV (with a resolution higher than QFHD).


About Orbotech

Orbotech Ltd. (NASDAQ: ORBK) has been at the cutting edge of the electronics industry supply chain, as an innovator of enabling technologies used in the manufacture of the world's most sophisticated consumer and industrial products, for over 30 years. The Company is a leading provider of yield-enhancing and production solutions, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components. Today, virtually every electronic device is produced using Orbotech technology. The Company also applies its core expertise and resources in other advanced technology areas, including character recognition for check and forms processing and solar photovoltaic manufacturing. Headquartered in Israel and operating from multiple locations internationally, Orbotech's highly talented and inter-disciplinary professionals design, manufacture, sell and service the Company's end-to-end portfolio of solutions for the benefit of customers the world over. For more information please see the Company's filings with the U.S. Securities and Exchange Commission (the "SEC (News - Alert)") at www.sec.gov. and visit the Company's corporate website at www.orbotech.com. The corporate website is not incorporated herein by reference and is included as an inactive textual reference only.

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words "anticipate," "believe," "could," "will," "plan," "expect" and "would" and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management's expectations and beliefs concerning future events affecting Orbotech and SPTS Technologies Group Limited ("SPTS") and are subject to uncertainties and factors relating to Orbotech's and SPTS's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control. Many factors could cause the actual results to differ materially from those projected including, without limitation, the completion, timing, terms and anticipated benefits of the previously-announced acquisition of SPTS and the related financing transactions; the timing and impact of conversion of SPTS's financial statements from U.K. GAAP to U.S. GAAP and the Company's ability to switch SPTS to a U.S. GAAP reporting regime; Orbotech's ability to effectively integrate and operate SPTS's business following the acquisition, the timing, terms and success of any other strategic or other transaction, cyclicality in the industries in which the Company or SPTS operates, the Company's and SPTS's production capacity, timing and occurrence of product acceptance (the Company defines 'bookings' as purchase arrangements with customers that are based on mutually agreed terms which, in some cases, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix, worldwide economic conditions generally, especially in the industries in which the Company or SPTS operate, the timing and strength of product and service offerings by the Company, SPTS and each of their competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices, the final outcome and impact of the criminal matter and ongoing investigation in Korea, including its impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company's customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter and other risks detailed in the Company's SEC reports, including the Company's Annual Report on Form 20-F for the year ended December 31, 2013, and subsequent SEC filings. The failure to complete the acquisition of SPTS could have a materially adverse effect on Orbotech's financial condition and results and could negatively impact the Company's share price. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.


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