Solutions that Create Value for Customers

Customer
ResponsivenessMedium-term Goals

Systems for Creating Value for Customers

Be the Sole Strategic PartnerTokyo Electron helps customers manufacture cutting-edge devices by maintaining an accurate and timely grasp on
customer needs and providing innovative technologies for future generations. As a production equipment company with adiverse product range, we propose optimal solutions contributing to value creation for customers.
Making full use of state-of-the-art AI and digital technologies, we also provide high-value-added maintenance services that
support the stable operation of equipment. We strive to further enhance customer satisfaction, which is a key management
theme we have tackled since our founding, aiming to be the sole strategic partner for customers.

The semiconductor market has been expanding significantly, driven by the acceleration of IoT, the global launch ofcommercial 5G services and the growth of device-to-device communication such as the automated driving of cars.
In fiscal year 2021, faced with various regulations around the world as a consequence of the spread of COVID-19,
including curfews, restrictions on travel and isolation measures, Tokyo Electron aggressively worked to maintainactive communication throughout all the Group companies so that we could continue to develop our business whilestrengthening cooperation with our global business sites. We also expanded the use of remote tools and strived tofurther strengthen our systems to provide customers with seamless high-value-added solutions, not only in sales
activities but also in service support.
Since 2018, we have worked to further strengthen our customer responsiveness through two divisions: our
Account Sales Division, which leads to new technology development based on the needs of traditional customers ofmajor semiconductor manufacturers for next-generation leading-edge technology such as memory, logic andfoundry; and our Global Sales Division, which responds to the needs of more than 100 customers in Japan andoverseas who deal in communication devices and image sensors for the IoT market as well as power devices andother products. By building stronger, close collaborative relationships with each business unit and, moreover, withoverseas subsidiaries, our respective sales divisions quickly provide customers with the technology, support andsolutions they need.
We accurately grasp the issues and requirements of our customers in their product development andmanufacturing operations, and provide this as feedback to our main development and manufacturing sites in atimely manner. To this end, we are working to further improve the level of our engineers involved in equipment
installation and maintenance, who act as a frontline link between our customers and us. We are also building a globalorganization and developing proactive, flexible operations in order to respond quickly and accurately to customer
needs as markets change.
In addition, we are working to build globally unified systems and structures in order to further enhance andstabilize the quality of our service support activities. The Global Service Committee, a regular gathering of service
leaders from relevant domestic departments and overseas subsidiaries, enhances information sharing and in-house
coordination related to improving the technical skills and interpersonal skills of our more than 4,000 field engineers
worldwide, the localization of startups and improving work efficiency using the work-time management system. At
our Total Support Centers (TSCs1), we operate our TELeMetrics™2 remote maintenance service, and provide
customers with high-value-added services by utilizing our wealth of knowledge and range of tools to propose
customized solutions for the various challenges they face.

1
TSC: Total Support
Center. Refer to p. 23
2
TELeMetricsTM: Refer to p.
24

Main activities
Solutions that create value for customers

Ensuring safety for customers

Systems for creating value for customers, Proposing customer
solutions leveraging a broad portfolio of products

Providing information to customers,
Global expansion of training forcustomers, Safe design of equipment

Initiatives for field solutions

Improvement of customer
satisfaction

Field solutions business, Advanced logistics, Total Support
Center, Knowledge management, Remote support system,
Upgrading engineers’ skills

Customer satisfaction survey

SDGs initiatives

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TOKYO ELECTRON SUSTAINABILITY REPORT 202 1■

Contribute to customer innovation generation and value creation through the proposal of
optimal solutions and innovative technologies■

Ensure a sustainable form of production and consumption throughout product life cycles
by considering safety and the environment■

Support the stable operation of various generations of equipment while further improving
productivity and promoting reuse and recycling

GlobalSales
Customers

Service
Support

Overseas
Subsidiaries

Account
Sales

Development &Manufacturing

Proposing Customer Solutions Leveraging a Broad Portfolio of Products
In a market where applications for semiconductors are ever-expanding, in order to meet the needs of production sites,such as improved yield and improved equipment efficiency per-unit area through enhanced productivity and smaller
footprints, we are practicing product development initiated from the customer perspective.
Two of our divisions work closely together in turning that perspective into products. Specifically, our Account Sales
Division identifies customer demands for next-generation technology and beyond, and based on these, our Corporate
Innovation Division reviews the requirements and converts them into actual, tangible products.
In addition to developing leading-edge technologies, we are also continuously improving the performance of ourmass production equipment, so that we can proactively respond to the needs of our customers spanning multiple
generations. In proposing solutions to customers, we leverage a broad portfolio of equipment, including those used in
the series of key patterning processes requiring advanced technical abilities, such as deposition, coating/development,
etching and cleaning. Through optimal solutions that incorporate systems and software in addition to production
equipment, we seek to optimize the production process. We strive to develop products that help strengthen ourcustomers’ competitiveness by achieving a balance between faster and better-quality semiconductor production.

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

22

Customer ResponsivenessInitiatives for Field Solutions
Knowledge Management

Field Solutions BusinessIn the area of semiconductors, as improvements are made in the performance of CPUs1 and memory, as advances are
made in miniaturization for mass production and as transistors used in autonomous driving systems and VR2/AR
become increasingly integrated, demand is increasing across a wide range of fields, such as medical treatment, finance,transportation and manufacturing. To meet this demand, it is becoming extremely important for our customers to
improve the utilization rate of their equipment.
We are working to further strengthen our field solutions business with the aim of ensuring that shipped equipment canoperate stably in the market over a long period. We are engaged in promoting knowledge management in field service,continuously improving our field engineers’ skills, and strengthening our global support system through Total Support
Centers (TSCs). Furthermore, in order to comply with various regulations due to COVID-19, including restrictions on
overseas travel and isolation measures when traveling internationally, we will help to maximize our customers’ business
operations by proceeding to develop remote maintenance support and educational tools.

1
CPU: Central Processing
Unit. A typicalcomponent of acomputer, alongsidememory and hard disks.
2
VR: Virtual Reality.
Technology that createsa virtual world
resembling reality in acomputer.

Advanced Logistics
As demand grows for semiconductors in a wide range of industries, we
are working hard to further strengthen our logistics to secure a stablesupply of equipment and parts, not only in response to the spread of
COVID-19 and unseasonably bad weather, but also from theperspective of our business continuity plan.
As part of building systems that enable us to provide customers witha continuous supply of equipment and parts, in March 2021, we began
operation of our second logistics center in Japan, a 6,000 m2 facility
located in Funabashi City, Chiba Prefecture.
The center will be operated using third party logistics (3PL3), whereby
both physical distribution and warehouse operations are outsourced to a single company, and in the future, in addition toconsidering expansion of the facility to cope with increased shipments, we will aim for an efficient and flexible logistics
system capable of responding to change. The full-scale operation of this new logistics center will enable us to provide ourcustomers in Japan with a more stable supply of equipment and parts. In the future, to further strengthen our response
to overseas customers, we will continue to build our logistics, including the expansion of facilities.

3
3PL: Third-Party
Logistics. Arrangement
whereby not only
physical distribution
but also warehouse
operations areoutsourced as a
package.

We promote knowledge management1 throughout the entire Group so that we can deliver high-quality service swiftly
to our customers. In the area of field service, we have built Service CRM2 so that we can create a database andcentrally manage customer equipment support and incident histories. Service CRM began operating in Japan in fiscal
year 2020 and is currently being rolled out globally.
In addition, by taking advantage of knowledge management tools such as Equipment Records and Knowledge
Search, comprehensive searches can be performed on multiple systems, helping to reduce the amount of time spent
on work. Equipment Records enables batch searches of equipment work histories based on equipment serial numbers,
including past repair information for customers and parts replacement histories. Knowledge Search, which wasrevamped in October 2020, enables users to enter keywords of equipment-related problems to carry out batchsearches of files and documents saved in the database based on past trouble information. In fiscal year 2022, we areworking on making the tools multilingual so that, in addition to Japanese and English, they can also support Korean
and Chinese. Not only by increasing the number of languages supported to improve the work efficiency of our globally
active field engineers, but also by promoting efforts to manage the various systems throughout the entire Group using
One Platform3, we will strive to further improve our customer responsiveness.
Knowledge Management Tools

2
Service CRM: Service
Customer RelationshipManagement
3
One Platform: An
initiative to manage
information using astandardized databaseand system. Refer toContinuous
Improvement of
Business Operations on
p. 28.

Multi Database
Trouble Information

Equipment Records

WisdomComprehensive Search of
Equipment History
Serial Number Axis

Service CRM

Knowledge SearchComprehensive Search of
Equipment History
Trouble Axis

Parts Order History
Overseas Report

BKM
Serial Number Search

Symptom Search

Best Known Method
Trouble Shooting Manual

Total Support Center

Remote Support System

Having established Total Support Centers (TSCs) in Japan, the United States, China and Europe, we will support
overseas subsidiaries through our global network centered around Japan.
At each TSC, dedicated representatives maintain and utilize a database of information about customers’ equipment
and examples of similar incidents. The TSCs also employ TELeMetricsTM to perform remote maintenance. In fiscal year
2021, we established a system where TSCs around the world support each other, taking advantage of time differencesin each region. These initiatives have enabled us to respond to inquiries and problems from customers around theworld with greater speed and precision than ever before.

We promote remote support using TELeMetricsTM to minimize any downtime of production equipment, to detect
abnormal operation before any major defect occurs and to support the stable operation of equipment.
With the growing need to support field engineers remotely due to travel restrictions and various state regulations as
a consequence of the spread of COVID-19, we worked on developing an advanced remote support system whereby
audio and video from a customer’s manufacturing site can be shared in real time and the confidentiality of information
can be better enhanced.
Starting in fiscal year 2021, we have also been working to enhance the convenience and quality of remote support
by adding our own unique features to our existing smart glasses4 system, including information protection, restricted
image transmission and phone translation.

Total Support Center

1
Knowledge
Management:
Management approachto promote internal
company sharing of
tacit knowledge held byindividuals to
encourage innovationand to improve overall
productivity

4
Smart glasses: Worn likean ordinary pair ofglasses, smart glasses
can display images anddigital information
through the glasses

Unique Features Added by Tokyo Electron
Information
Protection
Security feature forprotecting informationin case of loss or theft

Restricted Image
Transmission
Information security
feature whereby only
necessary images are
sent

Phone
Translation

Dangerous Area
Function

Feature that converts
voice to text anddisplays a translation(multilingual support)

Function that warns thewearer whenapproaching a preset
dangerous area

Support from a Global Network of TSCs
Using smart glasses (image)

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TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

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24

Customer ResponsivenessImprovement of Customer Satisfaction
Upgrading Engineers’ Skills

Customer Satisfaction Survey

At our training operations center established in 2019 to enhance the training structure and globalization of fieldengineers, a group-wide common skills management system has been established that meets the standards of
SEMATECH (a U.S. consortium for the joint development of semiconductors). The system helps us to deploy the mostsuitable human resources to provide customers with service based on an objective understanding of the skills of ourengineers.
In fiscal year 2021, we began providing education for expert engineers to improve the skills of engineers at ouroverseas subsidiaries. The education includes training programs that enable technical support engineers from overseas
to learn advanced development skills in a practical manner at our manufacturing sites in Japan. Furthermore,established in fiscal year 2021, our Global Data Engineering Team is also rolling out a program designed to train fieldengineers as data analysts specializing in Digital Transformation1.

1
Digital Transformation:
Refer to p. 19

Ensuring Safety for Customers
Providing Information to Customers
Tokyo Electron is committed to providing sufficient safety information on our products toensure that customers can safely use them. All products purchased by customers come witha TEL Safety and Environmental Guidelines manual. The manual describes examples ofpotential risks associated with using our products together with the methods for averting
those risks, as well as safety measures applied to products and recommended methods for
product disposal. It is divided into such categories as chemical, electrical, mechanical andergonomic. The manual is available in 12 languages2 to ensure that customers around theworld can understand the content accurately and safely use the products. In addition to the
TEL Safety and Environmental Guidelines manual, customers are also provided productspecific manuals tailored to the relevant product specifications.
If new safety warnings are identified after the product ships, we provide information toaffected customers. We also strive to ensure that necessary information is communicated to
any customers to whom we deliver products that involve the use of hazardous chemicals orhigh voltage electricity.

2
12 languages: Japanese,
English, German, French,
Italian, Dutch, Russian,Portuguese, Korean,
Traditional Chinese,
Simplified Chinese andFinnishTEL Safety and Environmental
Guidelines

Global Expansion of Training for Customers
We have established training centers all over the world, mainly at our development and production sites, and areproviding customers with training on equipment operation and maintenance to ensure they are able to use theproducts safely. In fiscal year 2021, demand for Web-Based Training (WBT) and Remote Training3 increased as a resultof the difficulty in holding equipment training on-site because of COVID-19.
While we have started remote training for much of our equipment, we are working to improve the content andquality of our WBT and remote training by sharing the equipment and methods we introduced with each of the
training centers. Going forward, we will continue to give priority to customer safety as we promote further
development of our training environment.

3
Remote Training: A
training course,
although remote, taken
by trainees using actual
equipment whileinteracting with the
instructor in real time
4
Safe equipment design: A
design concept thateliminates the cause of
the machine's harm tohumans through thesafety design of themachineSafe Design of Equipment

5
SEMI S2: This is a set ofenvironmental, healthand safety guidelines forsemiconductor
production equipment.
It is used mainly by theleading manufacturers ofsemiconductor
equipment in the UnitedStates and Europe, notonly for semiconductors
but also as safe
procurement guidelines
for electric and electronic
device manufacturing
equipment around theworld.

Taking the entire product life cycle into consideration, we carry out product risk assessments as early as possible in thedevelopment phase. Based on the assessment results, we implement safe equipment design4 to reduce the risks posed
to humans. We also examine and ensure compliance with increasingly strict laws and regulations around the globe,
and have a system in place for all safety regulations of the regions where our equipment is delivered.
We conduct compliance checks through third-party assessment bodies on the equipment we ship to ensurecompliance with international safety standards such as SEMI S25 and CE-Marking6. Additionally, we work with overseas
subsidiaries to take appropriate measures to comply with the laws and regulations of each country and region.

6
CE marking: When
exporting into theEuropean Union, CE
marking defines rules fordisplaying a CE mark as
proof that theequipment is safe andcomplies with
EU-defined rules(Directives).

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TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

We conduct a Customer Satisfaction Survey (TEL CS Survey) every year with the goal of making continual
improvements based on customer feedback. The survey started in fiscal year 2004, aimed at just a limited number ofdivisions. It was expanded to include all semiconductor production equipment divisions in fiscal year 2014, and later
the flat panel display production equipment division and overseas subsidiaries in fiscal year 2016, and currently, it is
implemented company-wide as the Customer Satisfaction Survey Program (CSSP).
Under the CSSP, we survey customers once a year, at the same time each year, and ask specific questions that willlead to improvements on a practical level. Information obtained from the survey is analyzed by business unit
(product), account (customer) and function (software, development, etc.), and the results of this are shared with
relevant divisions, such as sales, equipment/plants and service, to implement actions for improvement. Improvements
are also made continuously to all aspects of the survey method, including the questions asked, the analytical methods
used, and the overall operation of the survey activities.
In the TEL CS Survey for fiscal year 2021, responses were received from approximately 1,400 individual customers(70.2% of all customers), and 96.7% of all survey items received a score of 3 points or higher (Very Satisfied orSatisfied1), which is our annual CSR goal. This marked an improvement of 3.4 percentage points from fiscal year 2020.
When we receive an evaluation of 1 point (Very Dissatisfied), we respond to the customer as quickly as possible as partof a Shift Left approach to implementing early-stage improvements throughout the survey process. Going forward, we
will continue to aim for 3 points or higher for 100% of the questions asked, and the entire company will work as one to
implement customer-driven improvements.
Improvement Example
At a business unit that handles one of our product lines, the results for fiscal year 2018 fell below a score of 3 points inall three divisions (sales, equipment/plants and service), so we have been working on various improvements. Based on
the results of the TEL CS Survey, the Management Council immediately reviewed the results and formulated KPIs2, andhas since monitored the situation every quarter. The following improvement measures have been implemented for
issues identified for each customer in past survey results.

■

Explain our strategies to customers to gain their understanding■

Improve the frequency of customer visits■

Form an internal task force to make continual improvements for equipment-related issues■

Promote direct communication between customers and our engineers■

Clarify ownership of each issue at a meeting to address issues, etc.

1
On a four-point scale,
3 points or higher
represents “VerySatisfied” or “Satisfied”

2
KPI: Key performanceindicator. An
evaluation indicatorfor managing the
progress ofimprovements

By going through the PDCA cycle for these improvement measures, we were able to achieve a target score of 3
points or higher in the sales, equipment/plants and service divisions in the survey for fiscal year 2021. As a result, these
improvements have led to stronger products and we were able to confirm that overall customer satisfaction for ourcompany has improved.
PDCA Cycle

Percentage of responses
that indicated Satisfied
or Very Satisfied
CS Survey activity
preparation

Feedback to customers
Implement improvement activities
in each division
Confirm progress of improvement activities

Conduct survey ofcustomers

96.7%

Analyze and report survey results
Investigate improvement plan

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

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