E H S R E P O RT

Environmental Initiatives by Our Suppliers
The Tokyo Electron Group collaborates with its suppliers to reduce the environmental impact of its
products. The following describes the initiatives taken by two of our suppliers to reduce environmental impact.

Environmental Efforts at Our Suppliers—HORIBA, Ltd. and HORIBA STEC, Co., Ltd.
HORIBA, Ltd. and HORIBA STEC, Co., Ltd.

Internal Structure of an MFC
HORIBA MFC(Z500)▲

Environmental Initiatives by Our Suppliers* MFC: A variety of gases and liquids are used in the manufacture of semiconductors.
MFCs are used to accurately control the flow volume of these substances. MFCs
perform important functions in semiconductor production equipment, and the quality
and productivity of the entire semiconductor manufacturing process largely depends
on the performance and quality of the MFCs.

Drive power supply
Flow output signal

Flow rate setting signal▲

EHS REPORT24HORIBA, Ltd. and HORIBA STEC, Co., Ltd. (referred to collectively
as “HORIBA”) have been constantly expanding their business asmeasurement device manufacturers and are currently engaged in
the following four business segments: automotive test systems
business; analytical business; medical diagnostic business; andsemiconductor business. HORIBA mainly supplies mass flow
controllers (MFC*) for use in semiconductor/FPD production
equipment to the Tokyo Electron Group. HORIBA has the world’s
top market share for MFCs.

Control unit
Piezo actuator
Flow sensor

Inlet

Flow control valve

OutletGas input
through the inlet
on the left ismeasured by aflow sensor.
The flow volume is controlled by theflow control valve
using the piezo actuator bymeans of elements that elongate
or contract when a voltage isapplied. The gas is then output
through the outlet on the right.

Establishing an Integrated Management System
HORIBA established an Integrated Management System (IMS)
for quality and environmental management based on ISO standards, and an occupational health and safety management system based on OHSAS 18001. These functioned separately until
June 2004. HORIBA plans to expand the IMS to its group companies.

Approach to the RoHS Directive
HORIBA is working to meet the requirements for RoHS correspondence for its MFCs, in response to requests from its customers including the Tokyo Electron Group and to regulatorytrends in Europe.
In 2004, HORIBA started using lead-free printed boards inthe manufacture of its MFCs and in 2006 discontinued the useof substances regulated under the RoHS Directive in its newproducts. At present, HORIBA is working to meet the requirements for correspondence for its existing products. Lead-free
production lines are completely separated from conventional
production lines that use lead, and even the tools and jigs usedTOKYO ELECTRON Environmental and Social Report 2007

for the two types of lines are kept completely separate. HORIBA
inspects samples of the products it procures from supplierswith its own analyzers to check for the use of regulated substances in the products.

▲ Analysis on receiving products fromsuppliers▲ Lead-free soldering production line

Environmental Contribution of MFCs in theSemiconductor Manufacturing Process
HORIBA contributes to reducing the environmental impact
caused by the overall semiconductor manufacturing process
through its MFCs, whose functions have been improved in
response to the RoHS Directive. Specifically, HORIBA’s MFCs
contribute to a higher semiconductor yield with more precise
flow control and to higher productivity and lower gas consumption through their high responsiveness at all flow volumes. Inaddition, HORIBA’s multi-gas and wide-range MFCs can be usedregardless of the gas type and flow volume, and Tokyo ElectronGroup is now examining their use for its products.
(Conventional MFCs can be
Decrease in the Number of Lines
Due to the Use of Wide-Range MFCs
used only for a specified gas
MFCtype and flow volume, and so
Gas A
Gas B
multiple MFCs must be used,
Gas Cwith one MFC each for gas
Gas C
Gas Ctype and flow volume.) The
Gas D
use of multi-gas and wideGas Drange MFCs enables us to
Gas A
Gas B
reduce the number of MFCs
Gas C
needed and reduce theGas C
Gas C
electricity consumed by theGas Dcontroller.
Gas D

Comments from TEL
In the future, the importance of optimizing the use of processgases will increase and will be the key to conserving resources andenergy and bringing higher productivity to the entire semiconductor manufacturing process. We anticipate that HORIBA will be able
to help us with this optimization by the use of its analysis and flow
volume control technologies.

Environmental Efforts by Our Suppliers—YDK Co., Ltd.
YDK Co., Ltd.

Lead-Free Soldering and Response to theRoHS Directive
After Tokyo Electron Group conducted a survey on lead-free soldering in September 2003, YDK Iwate District began to train
lead-free soldering trainers following instructions from ourGroup. Subsequently in February 2006, they started lead-freesoldering. YDK Communications in YDK Iwate District attaches“RoHS-compliant” labels to identify its printed boards and other

Higher Productivity andImprovement Proposals
YDK’s basic policies are (1) toconduct detailed self-checks toreduce the number of defectiveproducts and (2) regard thoseengaged in the next process ▲ YDK’s manufacturing site
steps as in-house “customers.”
Based on these policies, theVE proposal form tocompany is actively making be used by suppliers
improvements and increasing its
productivity through mechanization, review of the line layouts for the assembly ofunits and the production of assemblies, and the adoption of a“street stand system,” in which only the necessary tools areplaced on a stand for each step in the unit assembly work.
In July 2007, YDK introduced a new production system,
which allowed the company to check order reception and themanufacture of products and parts on PCs. This helps the company reduce unnecessary stock and wasteful operations.
YDK is also proactive in making improvement proposals
using our Group’s Value Engineering (VE) proposal form whichleads to cost reduction and improvements in quality and productivity for both YDK and Tokyo Electron Group.

Safety Measures
YDK is committed to conducting safety activities, upholding
their motto to “abide by rules to ensure safety” and “make abright workplaces with no accidents.” It holds monthly meetingsof its health and safety committee, conducts disaster risk
assessments, and gives safety-related education and enlightenment to employees to achieve zero workplace accidents.
Comments from TEL
YDK willingly cooperated with us in introducing lead-free soldering. We also anticipate YDK implementing measures to comply
with the RoHS Directive. Proposals from YDK will help us make
improvements so that we manufacture better products.

TOKYO ELECTRON Environmental and Social Report 200725
Environmental Initiatives by Our Suppliers

In response to the increase in its responsibilities to society forenvironmental problems, YDK obtained ISO 14001 certificationin November 2003. As one of its environmental activities, thecompany has introduced packaging materials that can be reused
repeatedly and the reuse of rental waste cloth. It is also replacing
the fluorescent lamps at its
facilities with inverter-type
lamps and reducing theamount of paper used. InFY 2008, YDK will conduct
environmental activities in a
way that is more integrated▲ Waste cloth collection box for reuse
with its business activities.

▲ RoHS-correspondence label

EHS REPORT

Establishing an Environmental ManagementSystemproducts that comply with the RoHS
Directive. YDK will press forwardwith its discontinuance project for
total discontinuance of substances
regulated by the Directive in its products including units and assemblies
in response to requests from Tokyo
Electron Group.

▲YDK Co., Ltd. designs and manufactures information communication devices and semiconductor production equipment. It isalso engaged in the work of cutting parts for precision machines.
YDK includes YDK Mechatronics Tohoku Plant and YDKCommunications in Tono City, Iwate Prefecture (YDK IwateDistrict). The Tokyo Electron Group started to commission theprocessing of parts used in its thermal processing systems manufactured at its own Tohoku Plant to YDK in 1982. At present, we
commission the processing of parts, design of equipment, cutting of parts, and assembly of automatic device units to YDK.
Also, YDK designs gas controllers as a contractor at our Group’s
Tohoku Plant and also dispatches its employees to our manufacturing sites. YDK is therefore both a supplier and a cooperatingcompany for our Group. At ourbriefing session on manufacturing
trends held in April 2007, YDKIwate District was commended by
our Tohoku Plant for its highquality unit assembly and drastic
improvement in achieving its ▲ Certificate of commendationfrom Tokyo Electron Groupdeadlines.