Tokyo Electron Limited  Annual Report 08

T o k y o E l e ct r o n a t a G l a nc e

Semiconductor Production Equipment
Semiconductor devices (IC chips) are the key componentsof PCs, mobile phones and other digital products. Tokyo
Electron offers a wide range of equipment for producing
these devices, which it provides to semiconductor manufacturers around the world together with superior technicalsupport and service.
Tokyo Electron has a lineup of six product groups that
includes coater/developer, plasma etch system, thermal
processing system, single wafer deposition system andcleaning system used in wafer processes, as well as wafer
prober used in testing processes.

Main Products• Coater/Developer• Plasma Etch System
Dielectric Etch System, Silicon Etch System• Thermal Processing System• Single Wafer Deposition System
CVD System, Plasma Processing System• Cleaning System

Coater/Developer
CLEAN TRACK TM LITHIUS Pro™

Auto Wet Station, Single Wafer Cleaning System,
Pre-clean System, Scrubber System• Wafer Prober• Imported Product

Thermal Processing System
TELINDY PLUSTM

80.2%
FY2008

12.3%

Auto Wet Station
EXPEDIUS TM+

7.5%

Electronic Components and Computer Networks

FPD Production Equipment

Tokyo Electron has developed a new type of model for thisbusiness, consisting of a “trading business” for sales, inwhich it acts as a distributor of a wide array of sophisticatedelectronic components together with a “development business” that designs and develops products in response tocustomer needs, as well as our own in-house brand products. Business operations for this segment are handled by
Tokyo Electron Device Limited.

Tokyo Electron supplies LCD panel manufacturers with
flat-panel display (FPD) production equipment used to manufacture displays for PCs, LCD TVs and other electronicdevices, along with solid technical support and service.
The product lineup includes FPD coater/developer andFPD plasma etch/ash system. The size of substrates handled by such equipment is increasing each year with thegrowing popularity of large-screen LCD TVs.

Main Products

Main Products• Semiconductor Products• Computer Networks• Software• Boards and General Electronic Components• FPD Coater/Developer• FPD Plasma Etch/Ash System

inrevium™
Developed by Tokyo Electron Device Limited

16

FPD Plasma Etch/Ash System
ImpressioTM

Annual Report 08 Tokyo Electron Limited

800

400

4%
4%

726.4

642.6

600

27%

FY200835%

15%20010% 5%0060708

n Japann U.S.
n Europe
n South Korea
n Taiwann Chinan Southeast Asia

Sales by Region

Net Sales(Billions of yen)

1207%

9060

100.8

Overview of FY2008• Business environment: Capital investment was sluggish due tothe deterioration in the supply/demand balance for LCD
panels, which has continued since the latter half of 2006.
• Sales: Down 32.5% year on year to ¥68.0 billion• Sales to Taiwan dropped 63.1% year on year
• Sales were concentrated in products for 7th- and 8th-generation
large substrates.
• Orders recovered in the second half as the supply/demandbalance for LCD panels improved, increasing full-year orders
by 94.2% to ¥129.9 billion.

(Billions of yen)

22%FY2008

68.0

FPD Production Equipment

Sales by Region

Net Sales

486.9

Overview of FY2008• Business environment: The first half was robust due to active
capital investment, mainly for semiconductor memory products.
The second half saw deterioration of the supply/demand balance and scaling back of investment.
• Sales: Up 13.0% year on year to ¥726.4 billion• Sales to Taiwan rose the most at 79.8% year on year, followed
by a 9.2% rise in sales within Japan.
• Sales were up for all product lines, with the exception of wafer
probers.
• Orders entered an adjustment period from the first half of theperiod, and the value of orders for a full year declined 37.0%
year on year to ¥504.1 billion.

81.2

Semiconductor Production Equipment

3045%

26%

006

0708

n Japann South Korea
n Taiwann China/Southeast Asia

Electronic Components and Computer Networks
Sales by Region

Net Sales(Billions of yen)

111.2

90107.5

120
104.4

Overview of FY2008• Business environment: Signs of weakening of the Japanese
economy during the second half of the period led to a slight
slowdown in the semiconductor market, but IT investment wasstrong as companies focused on information security and legal
compliance related to internal controls.
• Sales: Up 3.5% year on year to ¥111.2 billion• In semiconductor products, which account for more than 70% ofsales, we focused on sales of high-value-added devices, as wellas took steps to expand contract design of semiconductors, andstrengthen development of our inrevium™ brand products.

12%

60

FY2008

30

88%
006

0708

n Domesticn Overseas

17