Research and Development

Product
CompetitivenessResearch and Development for the Future
Digital technology is becoming an increasingly familiar part of people’s lives, such as online education and medical
services, remote work, and the emergence of various services utilizing AI. The evolution of IT applications and thediversification of services are expected to continue. As a support for the evolution of such digital technology,
semiconductors will become increasingly necessary in the future, and more advanced and diversified technologies
will be required for semiconductor manufacturing. At Tokyo Electron, we discuss the role we should play for the
future on a daily basis, and are working company-wide on research and development with an eye on futuretechnology markets.
Market Heading toward Diversification

Customization

Moore's Law

Multifunctionality

Improved performance through transistor integrationOS

Medium-term Goals

Create Strong Next-generation Products

With semiconductors and flat panel displays becoming increasingly important as social infrastructure due to the progression ofdigital transformation and the expanded implementation of information and communication technologies, there is a demandfor highly advantageous equipment that responds to diversifying needs. Tokyo Electron creates the best, high-value-added
equipment with innovative technology in a timely manner through the development of product marketing and the global
promotion of research and development with an eye on future generations. We also continuously strive to reduce theenvironmental impact of our equipment. By providing technology that contributes to the development of devices with evenlower power consumption, we endeavor to preserve the global environment. We contribute to the development of industry
and society through innovative technologies and environmental initiatives.

Main activities
Research and development
Research and development for the future, Development system, Shift Left, Product marketing, Collaboration
with consortiums and academia, Intellectual property management

Tackling technological innovation
Research and development for next-generation computing, Promoting digital transformation (DX),Support for evolving displays

CPU + Memory

Communication systems

Mobility systems

Healthcare systems

Robotic systems

AI systems

PC/mobile
systems

Applications increase as manufacturing technologies diversify

Hyper-mass
Pursuit of ultra-efficient productivity

Development System
In the ever-diversifying area of semiconductor production technology, we have built a system to bring high-valueadded products into the market in a timely fashion, promoting technology development and technology innovation
for the next generations with collaboration between our Development & Production Group and Business Group. We
share technology roadmaps spanning multiple generations for the future with our customers, and work with relevant
divisions across the company in converting that technology to equipment in anticipation of their needs.
Specifically, the Corporate Innovation Division, which is headed by the Representative Director, President & CEO,along with the development divisions of the manufacturing sites in Japan and the marketing departments of business
units, are leading efforts to enhance process integration capabilities based on our wide lineup of semiconductor
production equipment and to promote and develop digital transformation1 using AI technology. In January 2020, weestablished TEL Manufacturing and Engineering of America to optimize development and manufacturing functions
and improve operational efficiency not only in Japan but in the U.S. as well. Since then, the company has been pushingahead with activities.
Furthermore, with regard to environment, health and safety (EHS), which is becoming increasingly important associetal demands escalate, the EHS Council, which oversees our entire company, is playing a pivotal role in promoting
the review and formulation of basic policies. Each of our manufacturing sites in Japan are also actively working tocreate a development system that is mindful of the environment, health and safety.
Development & Production Group
Corporate Innovation Division

SDGs initiatives

Development & Production 1st Division
Representative
■

■

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TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

Create innovative technologies by promoting innovation to help develop a sustainable
society
Contribute to the reduction of environmental impact throughout the company byproviding products and services that are conscious of the environment

Director,
President &Overseas Subsidiaries

1
Digital transformation:
Refer to p. 19

2
CSS: Composed of Vice
President and General
Managers of Tokyo
Electron, Presidents
from overseas
subsidiaries

Development & Production 2nd Division
Development & Production 3rd DivisionCEO

Development & Production 4th DivisionCorporate Senior Staff (CSS2)

EHS, Quality, Procurement, Production Technology

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

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Product Competitiveness

Shift Left
We are focused on advancing the Shift Left approach, investing resources (including technology, personnel and money) into theearly processes of product development. Together with customers who conduct research with a vision beyond even the next
generation and who aim to accelerate the speed of development further, we have created a technology road map, and areengaged in developing the various technologies required for its realization.
In fiscal year 2021, responding to the ongoing customer need for production equipment to take up less space, we succeeded in
improving equipment efficiency per unit area by maximizing the use of clean rooms and providing more productive equipment.
We also established new goals and strengthened our efforts to meet the environmental demands of customers for equipment.
Through promoting the Shift Left approach, we are endeavoring to understand customer needs at an earlier stage and tostrengthen feedback from front-line service engineers, and by reflecting the information obtained through this in the developmentof technology, we can propose superior products that contribute to maximizing yield for customer devices and capacity utilizationof their mass production line equipment. We also promote on-site collaboration for early delivery of evaluation units at customers’
plants and research and development laboratories, shortening the period between technology development and the conversion tomass production equipment and maximizing efficiency.
Shift Left

■
■
■

■

■

Joint development of technology roadmaps spanning multiple generations
Promotion of early engagement
Maximization of yield for customer devices and equipment operating rate from early stages of mass production,
and also reduction of environmental impact
Promotion of improvement in work efficiency and per person productivity, and further increase in investments
into human resources and development
Increase in equipment efficiency per unit area by achieving higher productivity and using less space

Product Marketing
We are promoting effective product development by having our sales departments and product marketing departments
appropriately play their respective roles. Our sales departments are responsible for building relationships of trust with customers
and ensuring that products and services are provided through business to the customers they serve. Meanwhile, our productmarketing departments plan and manage product strategies that meet the future needs of customers in target markets, such as
development planning to increase the value of customer products, services and the examination of value-adding mechanisms.
They also consider the commercialization of technology and the addition of functions based on the seeds of our development
divisions, and formulate strategies for collaborating with partner companies and consortiums.
Our sales departments and product marketing departments work together in developing product marketing activities that
contribute to customers’ products by anticipating market needs, and in doing so, help improve our product competitiveness andpromote our Shift Left approach.
Involvement in Product Development by Sales Departments and Product Marketing Departments

Led by sales
Expansion ofexisting products &CIP1 technology

Promotion & hearings■■

Survey & analysis (technology
and collaboration)

Product promotion
Collection of next necessary
technological information

Development of new
products/functions■

Fine-tuning of responses according tochanging circumstances■

Projects uniquely plannedby the development
division are examined andcommercialized andassessed if there is value infunctionalization

Future needs/seeds analysis

Target segment & plansetting■

Setting of target market

Led by productmarketing
New products &sharedtechnologies

Collaboration with Consortiums and Academia
We are enhancing our own research and development capabilities through collaboration with international anddomestic consortiums which allows us to further our development of leading-edge technologies. Specifically, we arefocusing on collaboration in a wide range of areas, from development to market launch of rapidly evolving
technologies and applications. This is achieved through participation in a global research hub developing nextgeneration AI hardware, by cooperating with BRIDG2, a not-for-profit, public-private partnership located in the U.S.
state of Florida, by strengthening collaboration in the field of EUV3 at imec and by accelerating our research in thefront-end and back-end fields4 at TTCA5.
We are also working on various collaborations with academia, including major universities in Japan. In particular, weare promoting collaboration in a wide range of fields with the National Institute of Advanced Industrial Science and

17TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

Technology (AIST)—one of Japan’s largest public research institutions—including the MRAM1-related research that wehave been working on for some time. In the field of semiconductor development, which is becoming increasingly
diverse, we will further strengthen our own research and development by leveraging AIST’s world-leading research
environment and world-class research staff.
Consortiums
Tokyo Electron Development Sites

1
MRAM:
Magnetoresistive
Random-Access
MemoryU.S.

(as of April 1, 2021)

Korea

TEL Technology Center, America

TEL Technology Center Korea

TEL Manufacturing andEngineering of America

Ireland

TEL Magnetic Solutions
1
CIP: Continuous
Improvement Program
2
BRIDG: BRIDG is a
not-for-profit,
public-private
partnership specializing
in advanced system
integration,
microelectronics
fabrication, III-V
materials deposition for
sensors, optoelectronics
and high-speedtransistors. BRIDG
offers production
process technologies,
research anddevelopment
capabilities and 200
mm microelectronics
fabrication geared
toward systemminiaturization, device
integration, hardware
security and productdevelopment key toaerospace/defense andthe IoT/AI revolution.
Supported by OsceolaCounty, University ofCentral Florida, Florida
High Tech Corridor
Council and others,
BRIDG provides thephysical foundry
infrastructure andcollaborative process toconnect challenges andopportunities withsolutions; “Bridging theInnovation
Development Gap”
makingcommercialization
possible.
3
EUV: Extreme
Ultraviolet. Refers toultraviolet radiation(ultraviolet rays) in the
wavelength range
1–100 nm.
4
Front-end/Back-end
fields: In the fabricationof semiconductor
devices, the first half of
the upstream process iscalled “front-end-ofline” (FEOL) processing(substrate) and thesecond half is called“back-end-of-line”(BEOL) processing(wiring).
5
TTCA: TEL Technology
Center, America, LLC.
Our research anddevelopment center in
the U.S.

FranceBelgiumJapan
National Institute of Advanced
Industrial Science and Technology

imec

CEA-Leti

Tokyo Electron Miyagi
Singapore

CNSE
BRIDG

Tokyo Electron Technology Solutions

IME

Tokyo Electron Kyushu
TaiwanTEL Technology Center, Taiwan

Initiatives in Japan
Since 2018, we have been conducting a joint research selection program with universities with the aim of discoveringand collaborating on advanced element technologies in relation to semiconductors. Over the past three years, 16
topics have been chosen for joint research. Although applicants are free to propose any research topics, we adopt
those proposals that match our technological abilities needs and which are expected to help develop our technologicaland planning capabilities and contribute to the future development of our business areas through the creative
perspectives and ideas only possible in academia.
Technical advisors selected from our development divisions and business units (BUs) are in charge of selecting
topics, with subsequent joint research activities managed by a secretariat. Technical advisors strive to generate
research results by promoting technical assessment with the university, and at the end of the research period, where
outcomes are found to be effective, the topics are considered by our BUs for ongoing research.
In addition to promoting the development of a wide range of semiconductor-related technology and devices, weare promoting the selection program in an effort to contribute to the evolution of science and technology and therevitalization of research activities at universities.

Intellectual Property Management

Cumulative number of

Our fundamental tenet for intellectual property (IP) is to protect our
technology inventors
intellectual assets and contribute to increasing corporate revenue throughthe support of our business activity.
In our uniquely evolving industry, we have increased the global
investment in research and development, including industry-academia
collaborative initiatives that synergistically grow our business. We establish regional IP offices, as well as corporate
headquarters, to locate IP personnel at research, development, and production sites worldwide. Those IP personnel
assess each project from various angles, including R&D and marketing perspectives, building IP portfolios aligned withtechnology, and product strategies in an effort to boost competitiveness.
We sustained our worldwide advantage in the IP strength again in calendar year 2020. 1,180 inventions were created inJapan, and 120 were created in other countries. We have maintained a global patent application rate2 of approximately
70% for the tenth consecutive year and achieved high patent approval rates (85% in Japan and 87% in the United States).
The number of joint patent applications in collaboration with partner companies, universities and other research
institutes around the world has reached 25, with 13 companies and 8 organizations in the last two years.
To increase IP awareness, we have continuously educated our engineers, who are the foundation of our R&D
strategy, and in total, around 4,370 engineers have become inventors. Additionally, because we often handle highly
confidential information, including technological information of our customers and collaborative partners, we havealso focused on confidential information management education.

4,370

2
Global patentapplication rate:
Percentage of
inventions filed as apatent application in
multiple countries

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

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Product CompetitivenessTackling Technological Innovation
Global demand for semiconductors has been increasing in recent years, and the production volume of semiconductors
is expected to continue increasing. Under such circumstances, reducing the power consumption of semiconductors
has become a major issue. We recognize this issue as an energy supply risk in the market, and are working for asolution.
Modern computing is not necessarily optimized for power efficiency. The mainstream solution to this problem thesedays is to optimize the architecture, placing memory devices closer to logic devices (arithmetic circuits), resulting in aconsiderable reduction in power consumption. One of the technologies that make this “optimization of architecture”
possible is 3D system integration. Also called “heterogeneous integration1”, 3D system integration technology is one
that combines and packages different materials such as silicon and non-silicon elements, CPUs2 and DRAMs3. Specificcombinations applying this technology are expected to reduce power consumption to between 1/100th and 1/1000thof conventional architecture.
Furthermore, the development of resistive analog neuro devices4 and nonvolatile resistive random access memory5that simulate the human brain is essential to the evolution of AI technology, and our film deposition technology iscontributing to this.
Realizing next-generation computing requires the development of AI chipsets with even faster processing andgreater energy efficiency. By taking maximum advantage of a wide range of technologies and various techniques, we
are working to create high-value-added products that meet the next-generation need of bringing computers closer tothe human brain. To this end, we are expanding further the technological areas in which we can contribute, such as
developing new materials and boosting the performance of chipsets through 3D system integration, and we are rollingout initiatives aimed at optimizing the power efficiency of semiconductors and realizing next-generation computing.

1
Heterogeneous
Integration: Packaging
that unites different
kinds of chips
2
CPU: Central Processing
Unit. A semiconductor
chip that serves as thebrain of a computer.
3
DRAM: Dynamic
Random Access
Memory. A type ofsemiconductor memory
used in the mainstorage unit of acomputer or as alarge-capacity working
memory of otherelectronic devices.
4
Resistive Analog Neuro
Device: Electronic
devices capable ofcontinuously changing
resistance5
Nonvolatile Resistive
Random Accessmemory: Random
access Memory thatuses nonvolatile
resistive memory
elements

Furthermore, we are also systematically recruiting and training
human resources to utilize data science1 in our business. In November
2020, we relocated our Sapporo office, a software development site,and established TEL Digital Design Square as our home base for DX
activities. In addition to installing leading-edge facilities and adopting a
hot-desking system to develop software technology, we will put effort
into recruiting and training data scientists, data analysts and otherhuman resources necessary for DX to utilize data science in ourbusiness.
Based on the belief that utilizing digital technology can contribute to
everything from accelerating the speed of development, improving
productivity and quality and enhancing business efficiency toreforming workstyles, we are working on greater DX promotion.

6
HVM: High Volume
Manufacturing

Image of DX Usage
Development of applications that contribute to corporate value creation using DX infrastructure
Product Life Cycle
DesignPrototype

Profit

HVM6

SupportModification

A Increased Profit

Application

D Extension of Lifetime Value
B Accelerated Market Launch
Time

C Reduced Development Costs

Data
Applicationand UseConstruction of Skill, Culture and Data Application and Use Platform DX Infrastructure

DX Infrastructure
Skill
Improvement

Awareness andCulture Creation

Environment Creation(Governance and Data Infrastructure)

We are also proceeding with the practical application of TELeMetrics™, which remotely connects our company withour customers’ manufacturing site, thereby enabling remote maintenance, as well as remote support for equipmentusing AR7 smart glasses and material searches utilizing AI.

19

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

2.00

In the adjustment of film stress2 (target value: -100 to 0 MPa)
using plasma-enhanced atomic layer deposition (PE-ALD3), we
used AI-based machine learning to consolidate and analyze past
test data and optimize the process in order to overcome theinability of the previous method to achieve film stressrequirements using engineers. As a result, we were able to not only
resolve this issue but also contribute to reducing wafer
consumption. By making use of AI as a member of the teamwithout being bound to conventional thinking and practices,
engineers will be able to perform work with high added value.

Target stress(-100MPa)2
Film stress: Stresscaused by different
rates of expansion, etc.
between the thin film
and substrate

1.50

1.00

0.50

0.00

Engineer

-600

-500

Machine Learning

-400

-300

-200

Stress (MPa)

-100

0

Comparison of process exploration results of a film stress (target
value: -100 to 0 MPa) using a 300 mm plasma-enhanced atomic
layer deposition (PE-ALD) system, conducted by a human engineer

DX promotion, which is making waves across the global industrial world, is also becoming more prominent in thesemiconductor and flat panel display (FPD) production equipment industries. Having positioned DX as an important partof the solution to the demand for further miniaturization and multi-layering, in January 2021, we formulated the TEL DX
Vision of “a global company where all employees drive enterprise value creation sustainably through activities such as
value addition and efficiency improvements by leveraging digital technology”. The two key objectives of this are tocontribute to customers’ value creation in a range of settings from development to mass production and to raise capitalefficiency in a range of settings from the product planning stage to maintenance. We will achieve these two objectives byresolving high-level problems via a cycle of monitoring, analysis and prediction, control and autonomy.

Cost

TEL Digital Design Square■ Example Initiative

Promoting Digital Transformation (DX)

Planning

1
Data science: The
approach of using data
to extract new scientificand socially beneficial
knowledge

Growth rate (Å/cycle)

Research and Development for Next-Generation Computing

7
AR: Augmented Reality.
Wearing smart glasses
to link with the realworld and obtain an
augmented reality
output based on
information about
objects in the real world.

Support for Evolving Displays

and machine learning respectively.

With the evolution of communications technology such as IoT and 5G,
further performance improvements are also expected for displays thatproject all kinds of information into the real world. In addition to higher
image quality and lower power consumption, there is also a growing
need for built-in sensors and greater flexibility of design. Organic Light
Emitting Diode (OLED) displays, which are used widely in smartphones
and televisions, are expected to expand to a wide range of applications,
including IT and automotive, because of their high image quality anddesign qualities. Foldable displays, in particular, are predicted to further
expand the potential of information devices. Along with the growing demand for such high-performance displays,
control technology for defective modes and stable performance are becoming more important than ever for FPD
production equipment. Furthermore, as the number of manufacturing processes increases, so too does the need touse energy and materials more efficiently in order to successfully reduce environmental impact.
Our product lineup includes the Impressio™ and the Betelex™ FPD etch/ash systems, the Exceliner™ FPD coater/developer and the Elius™ inkjet printing system for manufacturing OLED displays. Impressio and Betelex use PICP™4, aplasma module with improved energy efficiency, reducing power consumption by up to 20%, and achieving precise
processing and stability in mass production. We have also released PICP™ Pro, a new plasma module for highdefinition displays which achieves both yield improvements and mass production stability by reducing the generationof particles. The Exceliner, equipped with our original Air Floating Coater, permits higher throughput while maintaining
excellent film uniformity and saving chemical costs. The Elius inkjet printing system can significantly reduce theamount of OLED materials used in the manufacturing process compared to conventional vapor deposition methods,
and is also suited to production on large substrates. We are proceeding with development and sales of the Elius seriesahead of the imminent era of large, high-definition OLED.
We will continue contributing to the further development of diverse display products, tackling effective
technological innovation based on market needs such as improving productivity and yield and using energy andmaterials more efficiently.

3
PE-ALD: Plasma
Enhanced Atomic Layer
Deposition. Atomic
layer deposition (ALD)
is a thin-film deposition
technology that uses
continuous vaporphase chemical
reactions. PE-ALD is amethod of applying
plasma to activate areaction on thesubstrate.

4
PICP™: Original plasma
module developed by
Tokyo Electron which
produces extremely
uniform high-density
plasma on panel
substrates

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