Environmental and Social Report 2006

T E L Va l u e sTokyo Electron Limited (TEL) summarized the values and codes of conduct of the Tokyo Electron Group as TEL Values in April 2006.
We will share these values with all employees of the Group around the world, which will drive us towards new growth in the future.

TEL Values

TEL Values

Pride

Challenge

We take pride in providing high-value products and services.

We accept the challenge of going beyond
what others are doing in pursuing our goal of
becoming number one globally.

● We offer our customers cutting-edge technological products, along with the highest levelof quality and technical service, in the pursuitof total customer satisfaction.

● We view changes as opportunities, and respond to them flexibly and positively.
● We are tolerant of failure, and consider it important to learn from the process and results.

● We consider profit to be an important measureof value in our products and services.

TEL Values

TEL Values

TEL Values

Ownership

Teamwork

Awareness

We will keep ownership in mind as we think
things through, and engage in thorough implementation in order to achieve our goals.

We respect each other’s individuality and weplace a high priority on teamwork.

We must have awareness and accept responsibility for our behavior as respectful membersof society.

● We always have an awareness of problems,
and tackle challenges with enthusiasm and asense of responsibility.

● We create a workplace with an open atmosphere and positive communication.

● We strictly comply with laws and regulations
and the rules of society.

● We establish relationships of trust with ourbusiness partners in order to facilitate mutual
growth.

● We give top priority to safety, health, and theglobal environment.

● We make decisions quickly, and do what we
consider to be the best course of action.

● We strive to become a company that local
communities hold in high esteem.

Corporate Profile
Company name: Tokyo Electron Limited (TEL)Net Sales and Ordinary Income (Consolidated)

Address: TBS Broadcast Center, 3-6 Akasaka(billions of yen)

5-chome, Minato-ku, Tokyo 107-8481, JapanNet sales

Ordinary income

673.6

Tel.: +81-3-5561-7000

635.7

Established: November 11, 1963

529.6

Capital: ¥54,961,190,000 (as of April 1, 2006)

460.5
417.8

Main products: Semiconductor production equipment andflat panel display (FPD) production
equipment.
Employees: 1,058

-19.4

0

2002.3

Net Sales by Division

Net Sales by Region(Consolidated) (%)(Consolidated) (billions of yen)Computer
networks
17.4

Other
1.2

Electronic
components
86.8
FPD
production
equipment
81.1
Semiconductor
production equipment
486.8

SE Asia
3.5

21.1

-0.2
2003.3

2004.32005.32006.3

Group Employees

Capital Expenditures andR&D Expenses(Persons)(billions of yen)

China
2.3

10,171
10,269Europe6.7

8,945

Capital expenditures
R&D expenses

53.8
50.1

49.1

8,942

44.2

43.9

9,129
30.9

Korea
12.4

Japan
39.0

North
America
13.8
Taiwan22.3

02002.2003.2004.2005.2006.
4
4
4
4
4
Year ended on March 31, 2006

75.9

65.6

(non-consolidated, as of April 1, 2006)

Year ended on March 31, 2006

2 TOKYO ELECTRON Environmental and Social Report 2006

0

2002.3

13.3

12.3

11.0

9.9

2003.3

2004.32005.32006.3

Editorial Policy

Contents

We have prepared this environmental and social report to introduce
our activities, in particular our environmental, health, and safety (EHS) activ-

TEL Values, Corporate Profile

2

Editorial Policy, Scope of Reporting, Environment and
Safety Activity Milestones

3

Commitment by Top Management

4

ities, as intelligibly as possible. Key features of the report are as follows:● In ”Commitment by Top Management,” the Chairman andPresident of TEL express their opinions on the roles of the IT andsemiconductor industries and the social responsibilities that theHighlits

Tokyo Electron Group should fulfill in those industries (seepages 4 to 7).
● We invited external stakeholders to a roundtable meeting on● Connecting the World with State-of-the-Art

equipment, which is one of our priorities in fulfilling our social● Roundtable Meeting with Stakeholders

responsibilities (see pages 8 to 11).

Reducing the Environmental Impact of
Semiconductor Production Equipment● We report on supply chain management at two of our suppliers(see pages 24 and 25).

8

Management Report

We hope that we can promote communication with all stakeholdersof the Tokyo Electron Group through this report and incorporate their opin-

6

Technology

reducing the environmental impact of semiconductor production● Corporate Governance

12● Compliance13

ions into our future activities. We look forward to receiving your opinions
and comments on this report.
In preparing this report, we referred to the Environmental

EHS Report

Reporting Guidelines (Fiscal Year 2003 Version) issued by Japan’s
Ministry of the Environment and to the 2002 Sustainability Reporting● EHS Management

14● EHS Activity Goals and Results

16

Guidelines published by the Global Reporting Initiative.

Scope of Reporting● Details of Environmental Impact/Environmental<Japan>Tokyo Electron Limited, Tokyo Electron AT Limited,Tokyo Electron Tohoku Limited, Tokyo Electron TS Limited,Tokyo Electron Kyushu Limited, Tokyo Electron Software Technologies Limited,17

Accounting■ Organizations covered: Tokyo Electron Group● Product-Related Initiatives for the Environment

18● Environmental Initiatives in Transportation

23● Supplier’s Environmental Initiatives

24● Plant and Office Initiatives for the Environment

26● Health and Safety

30

Tokyo Electron FE Limited, Tokyo Electron Device Limited,Tokyo Electron BP Limited, Tokyo Electron Agency Limited<United States>
Tokyo Electron U.S. Holdings, Inc., Tokyo Electron America, Inc.,Tokyo Electron Massachusetts, LLC.

Social Report<Europe>Tokyo Electron Europe Limited<Asia>
Tokyo Electron Korea Limited, Tokyo Electron Korea Solution Limited,Tokyo Electron Taiwan Limited, Tokyo Electron (Shanghai) Limited,Tokyo Electron (Shanghai) Logistic Center Limited● Relationship with Employees

32● Communicating with Stakeholders

33● Comment from a Stakeholder

35(Company names as of August 2006)■ Period covered: Fiscal year (FY) 2006 (April 1, 2005 to March 31,
2006)■ Areas covered: Environment, society, and economy

Environment and Safety Activity Milestones
May. 1994 Standardization, Environment and Safety Center (Environment, Health &Safety Center) establishedMar. 1996 Product Safety Subcommittee (Tokyo Electron Group Product EHS
Technical Committee) launched
Apr. 1996 Environmental Subcommittee (Tokyo Electron Group EHS Committee)
launched
Dec. 1997 Sagami Office acquires ISO 14001 certification
Feb. 1998 Tohoku Plant acquires ISO 14001 certification
Mar. 1998 Saga Plant acquires ISO 14001 certification
Mar. 1998 Kumamoto and Koshi Plants acquire ISO 14001 certification
May. 1998 Yamanashi Plant acquires ISO 14001 certification
Sep. 1998 Tokyo Electron Group Credo and Principles on Environmental Preservation
establishedNov. 1998 Tokyo Electron Group Credo and Principles on Safety & Health establishedJun. 1999 Safety First policy establishedAug. 1999 Ozu Plant acquires ISO 14001 certification

Dec. 1999
Apr. 2000
Apr. 2000
Dec. 2000
Apr. 2001
Oct. 2001
Oct. 2001
Apr. 2002
Dec. 2002
Apr. 2003
Jul. 2004
Mar. 2005
Oct. 2005“Health, Safety, and the Environment” added to the Management Philosophy
Environmental accounting introduced
Unified safety training system “Safety 2000” implemented
First Tokyo Electron Group environmental report published
Product life cycle assessments started
Green procurement launched
Environmental training introduced in facilities not yet certified under ISO 14001
Original TEL Eco-Activity (environmental management system based on
ISO 14001) begun
Tokyo Electron Group Internal Assessment mutual auditing by environmentor safety representatives from each facility started
Lead-Free Task Team activities started
Yokohama office of Tokyo Electron Device acquires ISO 14001 certification
Miyagi Plant acquires ISO 14001 certification
Energy-Conservation Task Force starts activities to promote energy-saving
products

TOKYO ELECTRON Environmental and Social Report 2006

3

Commitment by Top Management

Contributing to Solving a Variety of Problems in the World throughSemiconductor Manufacuturing Technology
Semiconductors and FPDs Used in Everyday Products
as Part of Our Lives

Fulfilling Environmental and Social Responsibilities
through Three Different Approaches

Early in May 2006, I visited the United States to participate as a pan-

We have been implementing measures to reduce the environmental

elist in the World Congress on Information Technology (WCIT)

impact of our business operations and to provide more environ-

held in Austin, Texas. Representatives of the world‘s leading infor-

ment-conscious products. Recently, in the course of implementing

mation technology (IT) companies, including software companies, PC

these measures, it has become clear to us that we can fulfill our envi-

manufacturers, and semiconductor manufacturers, attended theronmental and social responsibilities through three different

congress to discuss topics such as the social roles to be played byapproaches. First, we can help people change their lifestyles tothe IT industry in the future.

more environment-friendly ones. Also, we can foster information

I was impressed with the vision that the world‘s leading IT

sharing to contribute to society. For example, if real-time informationcompanies have clearly shown for their IT business in Africa, thesharing becomes possible by the use of semiconductor and FPD tech-

Middle and Near East, and Eastern Europe as well as in the

nology in the kinds of daily goods mentioned here, transportation dis-

BRICs*. In their vision, wireless networks, rather than wired net-tances will be decreased for both people and goods. Furthermore, thisworks, will become popular in those regions, because building

information sharing will be useful in education and medical care.

wireless networks requires less cost and time. Also, by expanding IT

As I have already mentioned, the world is becoming more IT-ori-

networks all over the world, making it possible to access information

ented with an increasing use of semiconductors and FPDs. As awherever you are, even people living in remote areas will haveresult, electricity consumption is surging on a global scale. In view ofaccess to IT for school education and medical diagnosis. The

this, as the second approach, we can contribute to society by providing

power of IT thus improves the quality of life.

technology to reduce the amount of electricity consumed by semi-

In the 1980s, semiconductors were mainly used in general-

conductors and FPDs. In the past, semiconductor and FPD manufac-

purpose computers for industrial use. At the present, however,turers played a central role in the development of low-energy-con-semiconductors are used in a variety of goods that are part of our

sumption technologies. At present, however, they need to cooperate

daily life, including PCs, cell phones, game machines, automo-with semiconductor production equipment and materials manufac-

biles, security systems for buildings, and home electrical appli-

turers, who have been playing increasingly important roles in theances. I am very glad that semiconductor technology has con-technology used to produce semiconductors and FPDs.

tributed to society in such diverse ways, and at the same time I feel

Finally, as the third approach, we can contribute to the envi-

a strong sense of responsibility for theronment and society at large by manufacturing semiconductor andfurther development of semiconduc-

FPD production equipment that is more energy-saving, thereby

tors as president of a company insupporting semiconductor and FPD manufacturers in manufacturing

the semiconductor industry.

their products in a resource-saving manner. We are committed to taking these three approaches to fulfill our responsibilities.

Summarizing the Important Values Shared by Employees

Tetsuro Higashi

In April 2006, we summarized the values shared across the Tokyo

Chairman & CEOTokyo Electron Limited

Electron Group as TEL Values. This is passing the corporate culture
from generation to generation and ensuring that employees proactively respond to changes, keeping in mind how the Group has
achieved today’s growth.
I believe that “venture spirit” is the starting point for theGroup’s success today. Of course, it is not easy for the Group,
which has now grown into a large entity, to overcome all the difficulties with a venture spirit. However, I expect every employee tocontribute to opening up the new age, keeping TEL Values in their mind.
* The BRICs are Brazil, Russia, India,
and China.

4 TOKYO ELECTRON Environmental and Social Report 2006

Taking Leadership in Our Industry in Efforts for the Environment and
SafetyOur Unique Technological Abilities Enable Us to
Propose Environment- and Safety-Conscious Products

Leading the Industry in Improving Safety at WorkIn recent years, the Tokyo Electron Group has been gradually

We are leading the industry in promoting safety at work as well. Inchanging its way of business. In the past, we provided products that

FY 2006, we worked with SEMI*, which is a trade association, to for-met customers‘ needs in response to their requests. Now, we are

mulate the industry‘s safety guidelines that outline the systems

more active in proposing new products to customers, based on

and rules to be followed by employees of different companies

our unique R&D and product development plans.

when they work together.

In our environmental activities, we aim to contribute to a

When our employees work at customers’ factories, they are all

reduction in global energy consumption by promoting energy-saving

committed to safety, something for which customers havesemiconductor products. CO2 emissions from the semiconductor

expressed their gratitude. Some customers, evaluating our safety

industry are lower than the emissions from the iron and steel andmeasures highly, have even asked us to instruct them on safety sochemical industries. Semiconductor products, however, are used inthat they may become role models for other companies.

multiple industries, consuming electricity in substantial amounts. We

We plan to expand our safety promotion activities that involve

therefore cooperate with semiconductor manufacturers to pro-other companies. The Tokyo Electron Group has long been con-pose even more environment- and safety- conscious products,

ducting environmental and safety activities and we have estab-thereby fulfilling our responsibilities as a member of society.

lished the relevant departments. Based on this experience andFor displays, in addition to flat panel displays (FPD) that areexpertise, we will continue to lead the industry in safety.

more energy-saving than cathode-ray tube (CRT) displays, organic

Recently, legislation has been implemented for internal con-electroluminescence (EL) displays have been developed, whichtrol. However, I am afraid that employees will feel discouraged if theirconsume even less electricity than FPDs. I believe we can con-work becomes too regulated by laws and rules. It is important for us

tribute to a reduction in energy consumption through these products.

to build a flexible internal control system based on the minimum

Also, I think it important to show employees the direction of the busi-

schemes and regulations required and take action based on a fullness and corporate responsibilities we should fulfill in society. We

understanding of how to manage the system. I will continue toplan to promote R&D activities including those for lower energy

devote myself to providing the necessary knowledge and information

consumption and we have an R&D budget of 55 billion yen for theto employees and to improving their ethical standards.

current term.

* Semiconductor Equipment and Materials International (SEMI) is aninternational trade organization of semiconductor/FPD equipment and materials manufacturers.

Producing More Energy-Saving Equipment andReducing the Use of Regulated Chemical Substances
We clearly need to provide more energy-saving semiconductor and
FPD production equipment. There are two ways to reduce theKiyoshi Sato
President & COO
Tokyo Electron Limited

energy consumption of the equipment. The first method is to eliminate the waste of electricity in existing equipment by such measures
as reducing the use of standby electricity. The second method is to
drastically lower energy consumption through totally new technology,
the R&D for which of course requires time and labor.
The market share of the Tokyo Electron Group’s semiconductor
production equipment has been rising. This means that we arehaving more influence over the world’s semiconductor industry.
Therefore, improvements in our products will have a spillover
effect on the entire industry. We thus have major responsibilities in
the industry.
We have long been implementing measures to reduce theuse of regulated chemical substances contained in our equipment. We will further commit ourselves to reductions in line with theregulations implemented in Europe and other regions.

TOKYO ELECTRON Environmental and Social Report 2006

5

H ighlights

Connecting the World with State-of-the-Art Technology

The Tokyo Electron Group sees contributing to the development of the field of electronics as its essential role in society, so thateveryone in the world can communicate with each other using advanced technology and have equal access to business opportunities,
education, and medical services.

Reduction in Environmental Impact in the
Semiconductor and FPD Manufacturing Processes

Providing Energy-Saving and Efficient
Semiconductors

The Tokyo Electron Group develops and manufactures semicon-

The application of semiconductors and FPDs will be expanded

ductor and flat panel display (FPD) production equipment and sup-and these products will be used in more diverse products. It isplies it to semiconductor and FPD manufacturers around the

expected that the world’s demand for semiconductors and FPDs

world. Semiconductor and FPD manufacturers consume substan-will more than double in the future.

tial amounts of electricity and gas to manufacture their products,

Semiconductors and FPDs need electricity to perform theirand the world demand for semiconductors and FPDs is expected

expected functions, such as computing. At present, however,to further increase in the future. The Tokyo Electron Group sees

some electricity is wasted as heat. It is therefore important to re-as one of its social missions the provision of equipment that will

duce the consumption of electricity by improving the function

contribute to reducing the environmental impact caused by semi-

and efficiency of semiconductors and FPDs.

conductor and FPD manufacturing processes, and is developing

The Tokyo Electron Group makes relevant proposals to its

such equipment mainly in cooperation with its customers. (Forcustomers based on its know-how on semiconductor and FPD

the results of the roundtable meeting held with stakeholders, seemanufacturing processes built up over many years as a manufac-“Reducing the Environmental Impact of Semiconductor Produc-

turer of semiconductor and FPD production equipment, therebytion Equipment” on pages 8 to 11.)

supporting them in developing even more efficient semiconductors and FPDs that have no energy losses.

Our Products

Plasma Etch System(Semiconductor production equipment)

Coater/Developer(Semiconductor production equipment)

FPD Plasma Etch/Ash System(FPD production equipment)

Products
Manufactured with
Our Equipment
FPD

Expanded use of
semiconductors
and FPDs

6 TOKYO ELECTRON Environmental and Social Report 2006

Semiconductor

Actual and Predicted Demand for Semiconductors

Connecting the World through Advanced Technology
Today‘s world is made up of countries where people are receiving the benefits of advanced technology and countries where
people cannot receive these benefits. In view of this situation,
we believe that all the people in the world must be able to enjoy
the benefits of technology and have equal access to business opportunities, education, and medical services. Semiconductor and
FPD manufacturers, who are the Tokyo Electron Group‘s customers, produce CPUs, memory chips, and liquid crystal displays.
These items are used in a wide spectrum of electronics products
to improve the performance and energy efficiency of these products.
By supporting customers in manufacturing their products, the Tokyo Electron Group sees contributing to the creation of a global
society in which everyone will have equal access to knowledge
and information as its essential social role.

TOKYO ELECTRON Environmental and Social Report 2006

7

H ighlights

Roundtable Meeting with Stakeholders
Reducing the Environmental Impact of Semiconductor Production
Equipment
The Tokyo Electron Group regards reducing the environmental impact of its semiconductor production equipment delivered tocustomers’ factories as one of its major social responsibilities. We invited three people from semiconductor manufacturers who are
our customers to attend a roundtable meeting with our employees engaged in sales and equipment development. At the meeting,participants discussed the Group’s challenges and expectations from its customers, focusing on energy-saving equipment.

it contributed to energy efficiency and yield at your factory?

Sharing Information with Semiconductor
Manufacturers Is Essential for Developing EnergySaving Equipment

Mr. Kagino: Certainly there is a question of whether or not you can

Mr. Ibuka (TEL): In recent years, environment-conscious design

conductor manufacturers might not accept the same improve-has been attracting much attention. In particular, there are strong

ment method. There have been cases where an improvement ini-

demands for improvements in energy efficiency, and so the Tokyo

tiative that worked well at Factory A for a certain semiconductor man-Electron Group is trying to contribute to the earth and society by pro-ufacturer did not work or was not accepted at the same manufac-

viding more energy-efficient equipment. Today, we would like to ask

turer‘s Factory B. As the background to this, semiconductor pro-you, the users of our equipment, for your honest opinions. We

duction equipment is customized for each customer. However, I think

will incorporate your opinions into future product development.

that semiconductor manufacturers need to change their attitude

obtain that kind of information, and even if you did, other semi-

Mr. Kagino: The semiconductor industry is committed to reducing

to this.

its energy use in consideration of the environment. We, however,

Mr. Tsuru (TEL): Each customer’s factory has different needs

want to maintain the yield level while reducing our energy use.

regarding manufacturing methods and energy saving measures,

Accordingly, we started to improve the energy efficiency ofand we cannot provide a “one-fits-all” solution. If the customer

peripheral facilities first, including clean rooms and air condition-

can standardize the needs of all their factories and show them to us

ers, which will not exert much influence over the yield. If we promotewith other necessary information, we can press forward withthe use of energy-saving semiconductor production equipment in theenergy saving more easily. Do you think that will be possible?

essential manufacturing process, it might badly affect the yield,

Mr. Kagino: I think that’s the direction we must take from now on.

and so it is difficult for us to proceed. However, as we implemented
more energy-saving measures for air conditioners, the percentage of

Promoting Energy Saving for Existing Equipment

the total energy use that the production equipment accounted for

Mr. Sakaguchi (TEL): We manufacture and deliver new equip-

became more significant. The equipment is powered on evenment mainly to new factories. However, there are machines that wewhile it is not used for manufacturing semiconductors and thisdelivered in the past and are currently in use at customers’ factories

standby electricity is indeed a waste of energy. However, we cannot(“existing equipment”) and the number of those machines is

proceed with countermeasures, because it might lower the yield. I

more than ten times the number of new machines being deliv-

believe it is necessary for semiconductor manufacturers andered to new factories. For this reason, we think it necessary tosemiconductor production equipment manufacturers to cooperate

focus on reducing the energy being used by existing equipment.

together to reduce energy use in the semiconductor manufacturing

However, it will need time, labor, and money to improve existingprocess.

equipment. Would you give us your ideas on energy-saving measures

Mr. Yamanaka (TEL): It seems difficult to obtain yield-related

for existing equipment?

information from semiconductor manufacturers. For example, if

Mr. Kagino: As a semiconductor manufacturer, we can imple-

we supplied improved equipment to you, would you let us know how

ment energy-saving measures from two aspects: (1) to reduce the

8 TOKYO ELECTRON Environmental and Social Report 2006

total energy use and (2) to reduce the energy use per unit of production. The semiconductor industry is on a growth trend and so its
energy use is increasing. It would therefore be difficult to reduce thetotal energy use. We have announced reductions in energy use
per unit of production, i.e., per wafer or per semiconductor chip. In
the future, however, we need to implement measures to reduce thetotal energy use, and the most effective way to do this is to make
improvements to existing equipment. There may be a greaterneed to improve existing equipment than to provide new equipment. In my opinion, the best way to improve existing equipment is
to apply the ideas used in new equipment to existing equipment. I
would like you, as a manufacturer of semiconductor production

Mr. Tada: How about recovering all the emissions, an idea that is

equipment, to keep this in mind in developing new equipment,

now attracting much attention? It might be necessary to install a sep-

and to propose effective methods of improving existing equip-

arate pipe, but it would be worth the cost if we could recover andment.

recycle all the emissions, including fluorinated acid.

Mr. Sakaguchi (TEL): We do not have a clear picture of the semiconductor market in this respect. If we are assured that semiconductor manufacturers are willing to spend money for energy-saving

Contributing to Higher Energy Efficiency throughSemiconductors

equipment, we can launch a special task force to tackle this,Mr. Tada: It would be relatively easy to improve the energy efficiency

because it will be feasible as a business model. In this case, how-of equipment by 20 to 30%. However, I want semiconductor pro-

ever, as discussed earlier, we need to make customized responses

duction equipment manufacturers to completely review theirto each manufacturer and to each factory. If we can overcome

development concept to come up with a technology that can sub-this problem, I think we can provide you with a satisfactory solution.

stantially reduce the energy used by their products.

Mr. Kagino: I believe each manufacturer thinks it necessary to

Mr. Kagino: I agree with you. It might be possible to reduce thereduce the energy used by existing equipment. However, if weenergy that semiconductor production equipment consumes byimplement energy-saving measures focusing on existing equip-

50% from the present levels. I would like equipment manufacturers

ment, it will take time and labor and those measures may not be

to rack their brains to come up with energy-saving technologies

practical. As I said earlier, I wonder if it is possible to adapt the ener-

for components, for example, by examining the interrelationshipgy-saving technology used in new equipment to improving existing

between the electrode structure and exhaust emissions.

equipment. It would be wonderful if the cost of doing this could be

Mr. Ibuka (TEL): You said that energy use per wafer is decreasing

included in the cost of developing new equipment to keep thewhile total energy use is increasing. Towards the future, we mustcost of improving existing equipment low. I would like to havemake efforts to contribute to higher energy efficiency for society at

existing equipment improved at the time it is overhauled, without

large by promoting the use of semiconductors, instead of just pro-spending too much time and money for it.

viding energy-saving equipment. To this end, semiconductor man-Mr. Tada: It costs a lot to improve the peripheral pipes and if it is pos-ufacturers and semiconductor production equipment manufacturers

sible to implement energy-saving measures concurrently withneed to cooperate.

pipe improvements, we can afford to pay the extra cost. To do

Mr. Tada: I am the leader of the LCA* working group at the Japan

this, we need to cooperate with the department in charge of facto-

Electronics and Information Technology Industries Associationry facility management.

(JEITA). We use LCA to calculate the total environmental impact of

Mr. Takahashi: With regard to factory facilities, in order to reduce

semiconductors. It is true that manufacturing semiconductors has an

exhaust gas emissions with high global warming coefficients, we

impact on the environmental because the process consumes

need a device to recycle and reuse the gas.

large amounts of energy. Semiconductors, however, also contribute to reducing the use of energy when incorporated in state-ofthe-art products used by consumers. We would like to calculate boththe positive and negative impact of semiconductors with LCA.
* LCA: Life cycle assessment is a method developed to assess a
product’s full environmental impact throughout its lifecycle,
from procurement of materials to disassembly and disposal.

TOKYO ELECTRON Environmental and Social Report 2006

9

Minoru Kagino

Kazuhiro Tada

Kenji Takahashi

Munetsugu Yamanaka

Hajime Komatsu

Semiconductor Company
Toshiba Corporation

Elpida Memory, Inc.

Renesas Technology
Corporation

Development Planning Dept.
Tokyo Electron Limited

ESD Quality Assurance 2 Dept.
Tokyo Electron AT Limited

Complying with the SEMI S23 Guide* as an Industry
Standard
Mr. Komatsu (TEL): I am in charge of EHS for the Group’s factories.
In the past, we endeavored to reduce our own energy use. In
addition, we have now started to design environment-friendly
products. However, it is difficult for a factory to pursue productivity
and environment-friendliness at the same time. I am glad that I
can listen to invaluable opinions directly from semiconductor manufacturers today. Maybe we should do more comparison of energy
consumption for different types of equipment in addition to developing component technologies and building a new businessmodel. If semiconductor production equipment manufacturers canshow customers comparative data on the energy their equipment

manufacturers, regards the Guide as an industry standard.

uses, i.e. how much it consumes under standard specifications

Mr. Kagino: Specifications vary depending upon the manufacturing

and standard conditions, customers can decide which equipment toprocess. For energy saving, however, we want equipment manu-

buy, and this will lead to further energy saving.

facturers to promote relevant measures based on common criteria.

Mr. Kagino: That’s exactly what we were aiming at. The SEMI

All semiconductor manufacturers want to promote energy saving if

S23 Guide has already incorporated comparative indicators, and if

it doesn’t have harmful effects on yield. If equipment manufacturers

every equipment manufacturer refers to S23 in deciding the speci-

voluntarily comply with the S23 Guide as an industry standard,

fications of their equipment, semiconductor manufacturers cansemiconductor manufacturers will be able to accept it more easily.

easily compare and choose equipment from different equipment

Mr. Yamamoto (TEL): We would like to set an industry standard for

manufacturers.

energy saving, but it will be difficult to implement it without coop-

Mr. Ibuka (TEL): It is also important for larger numbers of semi-

eration from the semiconductor manufacturers. In many cases,

conductor manufacturers to demand that the semiconductor pro-semiconductor manufacturers eventually choose equipment

duction equipment manufacturers comply with S23. If the number ofbased on its cost. Some customers even tell us to remove thesemiconductor manufacturers who demand this increases, theenergy-saving function to lower the cost.

cost of the compliance imposed on equipment manufacturers will be

Mr. Kagino: However, once the function has become a standard, it

smaller. So in a sense it is up to the semiconductor manufacturers.

would be rather costly to remove it. I want the function to be truly

Mr. Ishida (TEL): It would be easier for us to comply with the S23

standardized.

Guide if the semiconductor industry as a whole, not just individual

10 TOKYO ELECTRON Environmental and Social Report 2006

Tomohiko Sakaguchi

Yuuichi Yamamoto

Seiki Ishida

Motohiro Tsuru

Joji Hoshi

Shigehito Ibuka

Etch Systems Dept.
Tokyo Electron Limited

Clean Track Dept.
Tokyo Electron Limited

Clean Track Development
Dept.
Tokyo Electron Kyushu Limited

Clean Track System Design
Dept.
Tokyo Electron Kyushu Limited

Environment, Health & Safety
CenterTokyo Electron Limited

Environment, Health & Safety
CenterTokyo Electron Limited

Mr. Tada: It might be better to incorporate the energy-saving
function as an integral part of the equipment.
Mr. Tsuru (TEL): If the S23 Guide is more widely accepted as a standard, we will be able to promote energy saving more smoothly.
Mr. Kagino: Semiconductor manufacturers belonging to JEITA
will all be adopting the S23 Guide in the near future. So it will be ideal
if semiconductor manufacturers and semiconductor production
equipment manufacturers cooperate to improve the S23 Guideand make it an industry standard.
*SEMI S23: Guide for Conservation of Energy, Utilities andMaterials Used by Semiconductor Manufacturing Equipment(prepared by the Semiconductor Equipment and Materials
International (SEMI))

Also, JEITA has established a system to compare products using

Environment-Friendliness Now An Essential Elements

LCA. For equipment as well, systems for standardization and

Mr. Kagino: Environment-friendliness, including energy saving,comparison will be established. I expect that the S23 Guide will pro-has been increasingly importance for equipment. At our company, wevide the driving force for the spread of energy-saving equipment, andimplement environmental assessment in developing products.

that semiconductor production equipment manufacturers will

We do not commercialize any products unless they have higher

make more efforts towards saving energy.

environmental efficiency than previous models. I think that somesemiconductor manufacturers will buy energy-saving equipmentthat uses only half the amount of energy used by ordinary equipment
and has equal performance, even if it costs more.
Mr. Tada: We are attributing more importance to energy saving. In
the past, we didn’t compare how much energy different types ofequipment consumes when we chose equipment from among
multiple products, but now, in addition to performance, we haveincluded energy consumption among the selection criteria.
Mr. Takahashi: Semiconductor manufacturers are all implementing
environmental assessment on their products. They are committed toreducing their environmental impact using comprehensive indicators.

In response to the roundtable meeting
We invited representatives from Toshiba, Elpida Memory,

carry out in-depth studies, including deciding on specificand Renesas Technology, which are our customers, to amethods. Also, the meeting highlighted the importance ofroundtable meeting. This meeting gave a great opportunity

identifying how much energy our products use based on theto our staff engaged in marketing, design, development, andSEMI S23 Guide, thereby promoting higher energy efficiency

EHS to exchange information on energy-saving semiconductor

and lower energy consumption. To meet customers’ expecta-

production equipment with customers. We will continue totions and gain their trust in this, we will continue to take asolicit our customers’ opinions and incorporate them inleadership role in the industry.

design and development.
As for customers’ requests to apply improvement technologies used in new equipment to existing equipment, we willof Environment,
Masaki Kaneko Director
Health & Safety CenterTokyo Electron Limited

TOKYO ELECTRON Environmental and Social Report 200611

M anagement Report

Corporate Governance
We are strengthening the corporate governance framework to increase corporate value for all stakeholders.

■ Fundamental Policy Concerning Corporate Governanceeach, excluding the Chairman & CEO and the President & COO.

Reflecting the ongoing globalization of management practices, our fundamental policy is to strictly observe standards for corporate ethics andInternal Controls and Risk Management

comply with laws and regulations. We are also dedicated to establishing

All activities at the Tokyo Electron Group are based on adherence toand reinforcing internal control and risk management systems, and to main-

the highest standards of corporate ethics and compliance with laws,

taining the transparency and objectivity of our business activities. The pri-

regulations and international rules. To oversee and ensure this, a director

mary objective of this policy is to conduct management that prioritizes thehas been appointed Chief Business Ethics Director. Ethical standards

creation of corporate value for the benefit of shareholders and all otherhave been established and measures are taken to see that these standards

stakeholders.

are strictly observed. Reflecting the fact that we now place evengreater importance on internal controls and risk management systems, we■ Measures Concerning Corporate Governance Framework

have upgraded the internal audit functions of the Global Audit Center. We

We regard the strengthening of corporate governance as vital tohave also added crisis management functions to the General Affairs

increasing its corporate value and shareholder satisfaction. For this purpose,

Department, including measures involving business risk and operational

we concentrate on three aspects of corporate governance: 1) ensuring therisk. This department is responsible for establishing the necessarytransparency and soundness of business operations; 2) facilitatinginternal regulations for managing each category of risk, as well as for activ-

quick decision-making and the efficient execution of business opera-

ities for training and raising employees’ awareness of risk manage-

tions; and 3) building an effective system for the timely and suitablement.

disclosure of information.

The Corporate Governance Framework■ Remuneration for Directors, Executive Officers andStatutory Auditors

We have 11 directors, including two external directors. We have adopted

Part of the remuneration for directors and executive officers of TEL and its

the statutory auditor system, as we believe that statutory auditors are an

subsidiaries is linked to operating results, with an upper limit of 3% of con-effective means of conducting management that reflects the interests ofsolidated net income. The remuneration is split between annual cash

shareholders. Accordingly, we have four statutory auditors, two of

bonuses and stock option based remuneration at a ratio of almost two towhom are from outside the company. In addition, we have separated theone. We believe that this system incentivizes officers to improve the cor-roles of the directors and the executive officers who oversee businessporate performance and share price because they share with share-

operations. Additionally, we have established two committees on the board

holders the risk of a decrease as well as the benefits of higher earnings andof directors. A Compensation Committee determines the remunerationa higher share price.

paid to the Chairman & CEO and to the President & COO. The

Remuneration for directors and statutory auditors(Millions of yen)

Nomination Committee selects candidates for directorships for submission
Remuneration

Amountto the annual shareholders’ meeting, and a candidate to be elected as

Amount paid to internal directors

President by the board of directors. Through these measures we con-Amount paid to external directors

10

Amount paid to internal statutory auditors

51

stantly work to improve corporate governance. The Compensation

360

Amount paid to external statutory auditors
26* The above amounts do not include annual bonuses and retirement allowances
paid to directors.

Committee and the Nomination Committee both have three members

Corporate Governance Framework

Annual Shareholder’s Meeting
Board of Directors Nomination Committee
Compensation Committee
Chief Business Ethics Director

Statutory
Auditors

ChairmanPresident
Request for improvements

Audit

Executive Officers

Audit and
improvement
reports

Confirm the progressof improvements andgive instructions

Request for Improvements
ReportMonitoring
ReportRisk Management Function
Checks and Balances

Business Depts.
Audit

12 TOKYO ELECTRON Environmental and Social Report 2006

Audit

Monitoring
ReportAdministrative Depts.
Audit

Internal Audit Dept.
(Global Audit Center)

Independent
Auditors

M anagement ReportCompliance
The Tokyo Electron Group is determined to carry out sound business activities in accordance with its corporate ethics andcompliance with the law.

■ Approach to Corporate Ethics and Legal Compliance■ Protection of Personal Information

Trust is and will always be the lifeline of the Tokyo Electron Group. The

Leakage of personal information has become a social concern infundamental requirements for maintaining trust are rigorous confor-

recent years and companies are required to manage the personal

mity to our ethical standards and compliance with the law, by our

information they hold in an appropriate manner. In Japan following

employees as individuals, and by each of our organizations. We give firstenactment of the Act on the Protection of Personal Information inpriority to compliance with high ethical standards and laws in con-

April 2005, the Tokyo Electron Group formulated its basic policies andducting our business operations.

rules on the protection of personal information. We educate employeeson the implementation of policies and rules, endeavoring to make

■ Establishing Ethical Standards

them more aware of these policies and rules. Furthermore, in Japan we

We believe that common standards must be applied throughout our divi-investigated personal information stored on approximately 11,000

sions in order to create the globally excellent company that we envision.

PCs leased to employees and created a ledger of personal information

In 1998 we established a Code of Ethics, which concretely describes ourto be managed by each Group company and department. Also, webasic views. At the same time, we established the Ethics Committee as

installed servers to be used exclusively for storing personal informationan organization for actual operations.

and prohibited employees from storing important personal information on their PCs. In addition, we added some rules to the guidelines on■ Measures to Strengthen the Compliance Systemenhanced safety measures for the protection of personal information.
The

These rules include those on the management of particularly important

Regulations, which provide for basic matters concerning compliance

personal information, such as information about business partners,

based on the Code of Ethics, are designed to help those engaged in the

personnel-related information, and general affairs-related information, as

business operations of the Tokyo Electron Group understand fully the rel-well as rules on the use of cell phones.

We

established

ourCompliance

Regulations

in

2004.

evant laws, regulations, and international rules as well as in-houserules and act accordingly at all times.
In 2005, we conducted an awareness survey on our Code of
Ethics and compliance measures targeting approximately 9,000
employees from both our domestic and overseas Group companies.
Based on the survey results and according to the Whistleblower
Protection Act of Japan enacted in 2006, we revised the Compliance
Regulations to make our hotline (system for reporting noncompliancewith the Code of Ethics and laws) more effective, including the prohibition of disadvantageous treatment of whistleblowers, protection of privacy in the process of handling noncompliance reports, and ensuring confidentiality.

TOKYO ELECTRON Environmental and Social Report 2006

13

E HS Report

EHS Management
The Tokyo Electron Group revised its Credo and Principles on Environmental Preservation in FY 2007. We will conduct moreadvanced environmental, health and safety (EHS) activities based on the revised principles.

■ Basic Idea for EHS Activities

develop products in line with a clearly defined environmental

The Tokyo Electron Group conducts EHS activities based on the idea

roadmap for its products, while verifying the environment-friendlinessthat giving first priority to safety, health, and the environment will leadof the products at their design, manufacturing, and use stages.

to gaining trust from the public in its business operations and to

Also, it clearly states that the Group will disclose the results ofincreasing its profit on a long-term basis.

verification and other relevant information to stakeholders via

In TEL Values established in April 2006, in which we summarize
our values and action guidelines, we also state, “We give top priority to safety, health, and the global environment” and “We must haveawareness and accept responsibility for our behavior as respectfulenvironmental reports and other means.

TEL Values

Awarenessmembers of society.”■ Updating Tokyo Electron Group Credo and Principles
on Environmental Preservation
In May 2006, we revised Tokyo Electron Group Credo andPrinciples on Environmental Preservation that were established in
1998, in order to show our direction and ideas more clearly. The
revised version makes it clear that the Tokyo Electron Group will

We must have awareness and accept responsibility for our behavior as respectful membersof society.
● We strictly comply with laws and regulations
and the rules of society.
● We give top priority to safety, health, and theglobal environment.
● We strive to become a company that local
communities hold in high esteem.

The Tokyo Electron Group Credo and Principles on
Environmental Preservation

The Tokyo Electron Group Safety and
Health Credo and Principles<The Tokyo Electron Group Credo on Environmental Preservation><The Tokyo Electron Group Safety and Health Credo>

The Tokyo Electron Group believes that preserving the global environment and constantly improving
it is one of the most important objectives for mankind as well as its business. Based on this credo,
we are determined to expand our business by maintaining harmony with the global environment,
and thus win the trust of our many customers, shareholders, employees, and society in general.

Safety and health training are required for all employees and board members of the Tokyo ElectronGroup. Our profit and delivery date requirements must not be met at the sacrifice of human life andthe safety of our facilities and equipment.

<The Tokyo Electron Group Principles on Environmental Preservation><The Tokyo Electron Group Safety and Health Principles>

1. Continuous Improvement
The Tokyo Electron Group is conscious that products manufactured by the Group affect theenvironment, and based on this awareness, we, with our customers and suppliers, shallcontinually strive to minimize the impact of processes and operations on the environment. We
will develop products consistent with a clearly defined environmental roadmap for the Group
products, verifying the appropriateness of efforts during design, manufacture, and use. To further
confirm the appropriateness of such efforts, we will undertake activities that fully take into
account regulatory and industry requirements and the needs of customers and otherstakeholders.

1. Continuous Improvement
The Tokyo Electron Group is conscious that the factors that affect the safety and health ofcustomers and its employees exist at the stage of manufacturing, transportation, installation,use, maintenance, and service of its products. Based on this awareness, we shall continually
strive to improve the safety and health of our products and eliminate factors that affect humanhealth.

2. Knowledge
The Tokyo Electron Group continually strives to enhance its understanding of the impact that theGroup has on the environment and the responsibility that this entails. In addition, the Group aims
to gain a quantitative grasp of environmental factors, and the impacts resulting from its activities
and operations.

2. Knowledge
The Tokyo Electron Group continually strives to enhance its understanding of safety and healthand improve these conditions for all people working at its sites. To that end, the Group aims togain a qualitative and quantitative grasp of safety and health factors on its activities andoperations.

3. Performance Criteria
In addition to strict adherence to environmental laws, treaties, and agreements, the Tokyo
Electron Group will also promote conservation of the global environment by formulating activity
plans that take into account industry standards and various other environmental requirements.

3. Performance Criteria
As well as strictly observing mandatory safety and health laws, treaties, and agreements, theTokyo Electron Group strives to enhance its own safety and health management system andimprove global safety and health programs by the proactive establishment of aggressive safety
and health performance criteria.

4. Disclosure
In addition to ensuring that all employees clearly understand our environmental concepts,
policies, the state of company contributions toward environmental protection, and the state ofproduct-related environmental efforts, as well as improving levels of awareness, we will
disclose relevant information to those outside the company via environmental reports and othermeans.

4. Disclosure
The Tokyo Electron Group shares information about its safety and health credo, policies, and theprogress of its safety and health activities with all board members and employees, and will
publish its progress to the general public as the need arises.

5. Partnership
The Tokyo Electron Group actively participates in environmental protection activities practiced byits customers, suppliers, and communities.

5. Partnership
The Tokyo Electron Group participates in safety and health activities practiced by its customers,
suppliers, and communities.

May 26, 2006

November 27, 1998

14 TOKYO ELECTRON Environmental and Social Report 2006

■ EHS Promotion System■ EHS Risk Management

Our EHS system takes the form of three pillars: Product EHS,

At manufacturing subsidiaries of TEL, environmental and safety

which advances EHS priorities in our products in general;risks are estimated based on ISO 14001 and OHSAS 18001 stan-

Customer-Site EHS, which advances those priorities during anddards for labor safety and health management systems. Theseafter start-up of our products; and Factory and Office EHS, which

subsidiaries are implementing measures to eliminate higher risks first.

concerns our facilities.

Also, they are endeavoring to reduce some risks although they are

The Tokyo Electron Group companies, in particular TEL’s

not yet legally required to do so. We believe it most important tomanufacturing subsidiaries, started developing and implementing

implement anti-global warming measures in line with the Kyoto

environmental management systems based on ISO 14001 in 1997 toProtocol targets in future EHS risk management.

obtain ISO 14001 certification.

Tokyo Electron Group’s EHS Promotion System■ Abiding by the Law
The Tokyo Electron Group operates in strict obedience to the law. We

Global EHS Committee* Committee Chairman: President of TEL

closely track new environmental laws and emissions regulations
and for some substances have enacted independent standards

Factory and
Office EHS(EHS activities
in each region)

Customer-Site EHS

Product EHS

that are stricter than legally required. In FY 2006, we were not(EHS activities atcustomers’ facilities)(EHS activities for
the Group’s products)

subject to legal actions of any kind with regard to environmental accidents, violations, fines or complaints.

ISO-14001-Certified Plants and Offices■ EHS Training

Company namePlant/office name

Certification
date

Certification number

The Tokyo Electron Group offers EHS training under the principle ofTokyo Electron AT Limited.
Tokyo Electron FE Limited.

Sagami Office

December 10,
1110-1997-AE-KOB-RvA
1997“the necessary training for the necessary people.” Training courses

Tokyo Electron Tohoku Limited

Tohoku Plant

February 19,1118-1998-AE-KOB-RvA Rev.3
1998

are grouped by rank and are open both to Group employees and to

Tokyo Electron Kyushu Limited

Kumamoto/Koshi/
Ozu/Saga Plants

March 26,
1998

1120-1998-AE-KOB-RvA Rev.2

Yamanashi Plant(Fujii/Hosaka region)

May 15,
19981124-1998-AE-KOB-RvA

hires. In FY 2007, we changed the content of advanced safety

Miyagi Plant

March 1,
2005

01245-2005-AE-KOB-RvA

training according to recommendations made by SEAJ* and the

Yokohama Office

July 14,2004

EC04J0144

Tokyo Electron AT Limited

Tokyo Electron Device Limited

employees of cooperating companies who work at TEL’s facilities. An
EHS training program is also a required part of the curriculum for new

training is now in compliance with the SEMI Safety Guideline forTraining Semiconductor Manufacturing Equipment Installation,
Maintenance and Service Personnel (S19-1102). In addition, in■ EHS Activities Monitoring Systemorder to further facilitate EHS activities, we provide training on

In order to strengthen our EHS management system, we areteam resource management focusing on communication within aincreasing the level of monitoring that verifies the system function andteam (see “TOPICS” on page 31).

results. Monitoring is done from multiple viewpoints within plants and* SEAJ: Semiconductor Equipment Association of Japan

offices, within the Group, or by third parties. We are especially
focusing on the Tokyo Electron Group Internal Assessment, a programof mutual EHS evaluations by representatives of many plants andoffices, which was instituted in FY 2003. In FY 2005, the three topics
of Product EHS Compliance, Product EHS Performance, andEnvironmental Performance and Legal Compliance were added to theearlier programs, which focused on labor safety and health. These
measures have reinforced our ability to check the environmental
and safety performance of individual pieces of equipment as well as
to allow plants to check each other’s environmental management. We
will increase the number of departments to be monitored and further

EHS Training● Special training(for internal environmental
auditors, special training on key
environmental aspects of work)● ISO 14001-based environmental
training (for manufacturing plants)● Training on environmental
activities (for office facilities)● Equipment-specific training● Customer-specific site entry
training● Safety training for employees
traveling overseas● Advanced safety training● Basic safety training

Environment

Health and Safety

strengthen the EHS activities monitoring system.

TOKYO ELECTRON Environmental and Social Report 2006

15

E HS Report

EHS Activity Goals and Results
The Tokyo Electron Group has set goals for EHS activities and is promoting those activities throughout the Group.

Goals and Results for EHS Activities in FY 2006
Goals for FY 2006

Results

Achievement
level

−

Started to identify energy consumption andthe amount of waste generated at field stations in Japan−

Continue to obtain dataーEHS mutual assessments

Perform EHS mutual assessments at plants and offices

Conducted EHS mutual assessments at twosites and made corrections based on the findings○

Increase the number of departments
to be monitored and expand the scopeof monitoring

P15○

Achieve the TEL Roadmap indicators

Achieved for five products out of six 200mm
products

Energy-saving equipment

Achieved for two products and nearly achieved for three products out of six 300mm
products

Achieve the FY 2008 and FY 2011 goals

P18、19△Action item
Promotion of EHS activities indomestic and overseas plants
and offices

Plans and goals for FY 2007 onward

Page in report

EHS management

Product initiatives
for the environment

Environmental
activities at
each plant or officeMeasures to reduce the use ofregulated chemical substancesin equipment

Clarify the targeted chemical
substances and the policies

Included Pb, Cd, Cr6+, Hg, PBB, and PBDE in
substances to be eliminated○Achieve the TEL Roadmap indicators

P20

Lead-free products

Start to manufacture lead-free
production equipment in January 2006

Achieved the goal○

Achieve the TEL Roadmap indicators

P21

Saving energy

Reduce energy consumption(1% decrease in CO2 emissions per unit of sales, asbased on the Law Concerning
the Rational Use of Energy)

Achieved the goal by decreasing CO2 emissions per unit of sales by 8.1% from FY 2005
level

○

Continue to reduce CO2 emissions perunit of sales by 1% annually
Start the calculation of energy consumed in transportation and check thelegal regulations and obligations imposed on shippers

P26

Waste reduction

Continue zero emission efforts
at manufacturing plants

Achieved zero emissions at all manufacturing
plants except one
The recycling rate of the entire Group was ashigh as that in FY 2005△

Continue zero emission efforts and examine reduction in the total amount of
waste

P27

−

Identified the use and emissions (into the air,water, etc.) of chemical substances regulated
under the PRTR system−

Continue to obtain data

P29

Reduce the number of accidents requiring four or moredays off work to zero and reduce other injuries accidents
by 30% from the FY 2005 level

The number and rate of accidents requiring
four or more days off decreased from the FY
2005 levels and the total number of injuries
accidents also decreased by 10%

×Continue to pursue the goal concerning injury accidents for FY 2006 andreduce the number of ergonomicallycaused accidents by 25% from FY 2006

Proper management ofchemical substances

Health and safety

Reduction in the number of
injury accidents

P30、31○ Achieved target △ Achieved 80% of target × Achieved less than 80% of target − Item for which no goal was set

We need to develop
components that areenvironment-friendly
Kengo Kuroiwa
Corporate Director
Tokyo Electron Limited

We were able to improve our environmental and safety
activities in FY 2006.
Customers are increasingly demanding us to implement
environmental and safety measures. Accordingly, as apremise for the sustainable growth of our business, we need togive more consideration to the environment and safety andconduct high-quality EHS activities.
To make our products more environment-friendly, wemust implement relevant measures on a long-term basis,from as early as the stage of developing components. At thedesign stage, we already have a system to check if the productis environment- and safety-conscious. The development andengineering staff are now more aware of the importance of
these matters.
For safety, we design our products based on the safety

16 TOKYO ELECTRON Environmental and Social Report 2006

standards implemented in each country and in compliancewith the SEMI Safety Guidelines. In training employees insafety, we have introduced an educational and training program for team resource management, which includes working
at elevated places and on-site training. As in FY 2005, we
had no serious accidents in FY 2006, but will continue toanalyze the causes of past accidents and implement drastic
measures to prevent the recurrence of similar accidents,
while enhancing education and training for employees.
We revised the Credo and Principles on Environmental
Preservation in FY 2007 to replace the abstract expressions contained in it with more specific ones, thereby clarifying ourmeasures. Based on the credo and principles, we will create aroadmap and press forward with our efforts.
My Eco Life
Whenever I have time, I spend
it in the wild near my parents’house collecting edible wild
plants and mushrooms.

E HS Report

Details of Environmental Impact/Environmental Accounting
We fully understand the details of environmental impact caused by our business operations and obtain accurate environmental
accounting data to utilize them in our business management.

■ Details of Total Environmental Impact

Input-Output

The Tokyo Electron Group uses a large amount of
natural resources in conducting its business. As
FY 2006

shown on the right, manufacturing plants and officefacilities of the Group have material flows that canbe characterized by large environmental impact
caused in the process of evaluating products. This isbecause we evaluate our products (semiconductor● Electricity

Comparison
with FY 2005

Comparison

FY2006 with FY 2005

258,800MWh (+4.7%)● Gas

948km3 (+19.4%)● Fuel

2,811kl (+1.1%)● WaterTokyo Electron
Group

3

1,095km (+9.1%)

production equipment) using electricity and diverse● Chemical products
8.2t (-27.4%)(regulated under the PRTR
system as Type I chemical products)

chemicals in the form of gases, as in the actual● Paper (copy paper)● Total product shipment

22,489t (+3.0%)● CO2101,342t (-2.7%)● NOx● Wastewater(domestic andoverseas plants andoffices)● WasteRecycled amount343t (-9.0%)

11.9t (+4.4%)
3

1,084km (+9.1%)
13,186t (+19.6%)
12,717t (+20.0%)

Amount of waste simply incinerated
and disposed of in landfills
469t (+8.8%)

semiconductor manufacturing process.

■ Environmental Accounting
Scope: Major plants and offices in Japan (in Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Amagasaki, Osaka, Saga, Kumamoto, Koshi, andOzu)
Period covered: April 1, 2005 – March 31, 2006
We conduct environmental accounting according to the Environmental Accounting Guidelines 2002 and the Environmental Guidebook II issued by the Ministry of theEnvironment.

Environmental Protection Costs in FY 2006

(In thousands of yen)

Item

Main initiatives

1. Business area cost
Itemization 1.1 Pollution prevention costs

Prevention of air pollution, water pollution, soil pollution, etc.

1.2 Global environmental costs Prevention of global warming, protection of the ozone layer, etc.
1.3 Resource circulation costs

Efficient use of resources, reduction of waste, etc.

Capital investment

Expense189,127

753,80365,719330,228

123,408

35,3640388,211

2. Upstream/downstream costs

Green purchasing, green procurement, etc.

5,538

89,474

3. Management activity costs

Environmental education, monitoring and measurement ofenvironmental impacts, etc.

12,852

183,974

4. Research and development costs

Product R&D, etc.

0

1,721,077

5. Social activity costs

Tree planting and vegetation, supporting of local environmental
activities, information disclosure, etc.

079,134

6. Environmental damage costs

Repairing of damage to the natural environment, etc.

00

7. Other costs

Other
Total

0

0

207,517

2,827,462

Economic Benefits of Environment Protection Activities in FY 2006
Classifications of environmental costs(In thousands of yen)
Details

AmountReduced electricity usage (e.g. benefits from adopting
an inverter system on refrigeration equipment)

126,763

Water-related benefits

Reduced water usage (e.g. circulating of cooling water)

1,953

Paper-related benefits

Reduced paper usage (e.g. encouragement of duplex
copying and use of electronic media)

732

Resource-related benefits

Reduced use of heavy oil and gas-734

Benefits related to electricity and other energy

Cost reduction

Other benefits

Reduced use of liquid nitrogen and copying toners

103,240

Waste-related benefits

Reduced waste volume-168,242

Cost reduction subtotal
Profits

Waste-related benefits

63,712

Profits obtained from selling recyclable waste, etc.

2,389

Profit subtotal

2,389

Grand total

66,101

TOKYO ELECTRON Environmental and Social Report 2006

17

E HS Report

Product-Related Initiatives for the Environment
We take a variety of measures to reduce our environmental impact, including the provision of energy-saving production equipment
and reductions in the use of regulated chemical substances.

■ Our Approach to Reducing the Environmental Impactof Our Products

for us to continue our environmental, health and safety (EHS)

We believe it is extremely important to promote environment-con-measures. Accordingly, it is becoming more and more important for

scious designs, as we have clearly stated in the revised Tokyo

us to design and develop products that incorporate EHS. In accor-

Electron

Environmental

dance with the globalization of our business, we also need to pay

Preservation. We give priority to the provision of energy-saving

more attention to the legal regulations of each of the countries we do

equipment and to reducing or finding substitutes for the regulated

business in. We will continue to promote “Design for EHS.”

Group

Credo

and

Principles

on

Recently, there are increasing expectations from various quarters

chemical substances contained in our products.

■ Organization for Reducing Environmental Impact

Organizational Structure to Promote EHS Measures for
Products

We have three units established under the Product EHS Technical

Product EHS
Technical Committee

Committee. The Product Safety Working Group is responsible for
conducting activities to improve product safety. The Chemical
Substance Measures Team is responsible for reducing and finding
substitutes for regulated chemical substances contained in equipment parts and components. The Energy-Saving Task Force,
which was founded in October 2005, is responsible for imple-

Chemical Substance
Measures Team

Product Safety WG

Energy-Saving
Task Forcementing measures to improve the energy efficiency of our products.

TOPICS
Calculating the Energy Used by Semiconductor
Production Equipment: SEMI S23

Various Energy Sources Used at Different Stages● In the kitchen

Ventilation

We have traditionally measured and calculated the electriciCooking

ty consumed by the equipment itself. However, semicon-

Wash

Boil

Fry

Bake

ductor production equipment uses a range of resources,
including water, dry air, and cooling water, and generates

Ventilation
fan<Food>

waste heat, and its peripheral devices (vacuum pumps andcooling equipment) also consume energy. The type ofenergy used also differs with the equipment type. In view ofWatersupplyCooking
stove

Microwave
oven

Water

Gas

Electricity

this, SEMI established the S23 Guide for Conservation ofEnergy, Utilities and Materials Used by Semiconductor
Manufacturing Equipment. We now calculate the electricity
consumed by our products comprehensively by using

Wastewater● By semiconductor production equipment
Semiconductor manufacturing process
Washing
Thermal processing
Etching

appropriate energy coefficients in compliance with the
Guide.
<Wafer>

The Tokyo Electron Group took the initiative andplayed a central role in the formulation of the Guide. Its

Ventilation

Energy-Saving Task Force calculates the energy consumed byeach product based on the Guide. The figures on the rightcompare how energy is used in the kitchen (upper right)
and by semiconductor production equipment (lower right).

18 TOKYO ELECTRON Environmental and Social Report 2006

Pure water
Wastewater
Chemicals Water

Cooling waterElectricity

Gas

Air/Nitrogen

■ Energy-Saving Measures for Products

and so we can optimize the inflow volume of nitrogen according to

To reduce the energy that our products consume when they are used

the oxygen content at each of the wafer processing stages. This hasby our customers, we are examining measures to achieve the fol-enabled us to reduce the use of nitrogen by approximately 60% com-lowing five targets and will develop the necessary technologies: (1)pared with the amount used by the previous model.

reducing energy used by the product itself; (2) reducing energy
used by peripheral devices; (3) managing the product in an energy-

Reducing the amount of nitrogen used by the thermal
processing systemsaving manner; (4) reducing energy used by the clean room; and (5)managing the clean room in an energy-saving manner (planned
operation and proper management). For energy-saving manage-

Nitrogen(optimizing the inflow volume)and the manufacturers of clean rooms. In addition, we will identify
how much energy our products consume in reference to the
SEMI S23 Guide and implement the necessary measures.

Gas
supply box

Oxygen meter

ment of the clean room, we will cooperate closely with customers

Reactorfurnace

Loadingarea(Constantly monitoring
the oxygen content)

Approach to Energy Saving(5) Managing the clean room in an energy-saving manner(planned operation and proper management)

Example 2. Reducing the amount of energy used byperipheral devices for the Plasma Etch System(4) Reducing energy used by
the clean room

Our Telius™, a plasma etch system, uses a lot of energy for thechiller (the device that cools the refrigerant and the inside of the sysCoolingequipment(2) Reducing energy used byperipheral devices

Vacuumpumptem) and for peripheral devices such as the vacuum pump, which
maintains a vacuum in the chamber. We implemented measures to(1) Reducing energy used by
the product itself

reduce energy used by these peripheral devices. By controlling(3) Managing the product in an energy-saving manner

the chiller with an inverter, we reduced the use of electricity by 30%.
Also, we eliminated energy waste by operating the vacuum pumpintermittently according to the operational status of the system.

■ Energy-Saving Examples
We implement energy saving for each of our products according to
the types of energy sources used and the amount of energy consumed.

Example 1. Reducing the amount of nitrogen gas used by thethermal processing system

Reducing energy used by peripheral devices in the
Plasma Etch System

In the loading area of the thermal
processing system, where wafers
are loaded for input into the reactor
furnace, the oxygen content is kept
Teliusat a low level by injecting nitrogen toprevent the surface of the wafer
from oxidizing naturally. In the previous
model, the inflow volume of nitrogen
was kept at a certain level, but for
TELINDY™, we have made it possible to constantly monitor the oxygen
content in the loading area to control it,

Chiller

Vacuumpump

Use of electricity
reduced byapproximately 30%
by inverter control

Operational losses
reduced byintermittent
operation

TELINDY

TOKYO ELECTRON Environmental and Social Report 2006

19

E HS Report

Product-Related Initiatives for the Environment■ Our Commitment to Reducing the Use of Regulated
Chemical Substances in Products

manufacturing subsidiaries. We share relevant information through thisAgainst the backdrop of growing concerns over the impact thatparts and materials that contain regulated chemical substances

harmful substances contained in parts and materials have on the envi-

with alternatives that do not contain them. Two of our manufacturing

ronment and ecosystem, an increasing number of countries are

subsidiaries have also founded special teams to implement measuresregulating the use of these substances in automobiles and electricalfor regulated chemical substances. These special teams decide

products in recent years. In particular, the WEEE1 and RoHS2

the implementation schedule and roles to be shared by eachteam and are asking our suppliers to cooperate with us in replacing

directives implemented in Europe and China’s RoHS are attracting

department and individuals, and conduct regular reviews to ensuremuch attention from related industries. These directives have athat the measures are implemented without delay. The Chemical

considerable influence on the products of the Tokyo Electron

Substance Measures Team discusses any problems that are difficult

Group, and we have started reducing the use of regulated chemical

to improve or solve through the special teams alone, and identifies thesubstances in our products to meet the requirements of the direc-

measures that can be implemented.

3

tives even before they are actually implemented.
The RoHS directive is applied to products put on sale in Europe in■ Survey on the Use of Regulated Chemical Substances

or after July 2006, and the use of the following six chemical substances

We surveyed the use of regulated chemical substances targetingin products is prohibited: lead, cadmium, mercury, hexavalentapproximately one million registered parts, using the JGPSSI

chromium, polybrominated biphenyls (PBB), and polybrominatedFormat, which is an industry standard format.

diphenyls ether (PBDE). China’s RoHS, which is scheduled to comeinto force in March 2007, also prohibits the use of these six substances. Accordingly, we have decided to give priority to discontinuing
the use of these substances, as shown in the table below.
1. WEEE: Waste Electrical and Electronic Equipment
2. RoHS: Restriction on the use of certain hazardous substances inelectrical and electronic equipment
3. China’s RoHS: Officially called “Management Methods for thePrevention and Control of Pollution from Electronics Information
Products”

JGPSSI Format

A survey conducted at Tokyo Electron AT, one of the manufac-

Chemical Substances to Be Reduced

turing subsidiaries of TEL, has revealed that regulated chemicalFirst Priority
Cadmium

Pigments, stabilizers, and resins

substances are contained in the following parts:● Lead and its compounds: Solder used for circuit boards andHexavalent chromium Chrome plating
Lead
Mercury

Solders, paints, electrical wire coating, and free-cutting metalcomponents

Batteries and fluorescent lamps

PBBs

Resin parts● Hexavalent chromium compounds: Coating of terminal blocks

PBDEs

Resin parts● Cadmium and its compounds: Connectors and joints
Based on the survey results, we are continuing to educate

Second Priority
Substances designated as Level A substances in JIG*
(We have already implemented measures for many of these substances.)* Joint Industry Guide for Material Composition Declaration forElectronic Products (JIG) was prepared by Japanese, American, andEuropean private trade associations and this Guide lists the chemical substances for which measures should be implemented. The Guide classifies the substances into Level A and Level B: 16 substances are listed as
Level A substances, including cadmium, hexavalent chromium, lead,
mercury, PBBs, and PBDEs, and more than 400 substances are listed as
Level B substances.

employees and suppliers on the importance of reducing the use of
these substances and sharing relevant information with them with a

Results of Survey Conducted at Tokyo Electron AT (June 1, 2006)

61.6

responsible for reducing the use of regulated chemical substances.
The team comprises representatives from TEL’s headquarters and its

20 TOKYO ELECTRON Environmental and Social Report 2006

53.8

47.3

Processing

51.2

0.3

■ System to Reduce the Use of Regulated Chemical
Substances
The Tokyo Electron Group’s Chemical Substance Measures Team isGeneral purchasing

(%)

0

5.0

12.3

33.4

33.9

52.4

32.0

Specifications

42.5

42.9

0.0

0.0

57.5

57.1

PBDEs

Six substances
regulated
PBBs
under theRoHS directive

23.0
26.6

16.8
Cadmium
Lead
Mercury Hexavalentand its
and its
and its
chromiumcompounds compounds compounds compounds

50.4

that do not contain these regulated chemical substances. All of ourdepartments, including those in charge of development, design,
manufacturing, materials, quality assurance, and safety and theenvironment, are making concerted efforts to achieve the goal.

■ Lead-free Initiatives
We started to implement measures to discontinue the use of lead in

Tensile Strength Test on Soldered Parts(N)

Maximum tensile strengthview to introducing alternative replacement parts and materials

Lead-free solder
Lead solder
13.75

12.73

13.30

13.50
11.77

12.38

11.32

11.71

11.47

11.29

500

750

1000
(Times)our products before taking measures for other regulated chemical0

substances.
The Tokyo Electron Group’s products are equipped with avariety of complex electronic circuit boards for advanced control

First time

Shear Test on Soldered Parts(N)

Lead-free solder

functions, and with cables and harnesses that supply power toLead solder
35.00

and exchange information with the boards. We use solder to connect

solder, it is necessary to evaluate the reliability of alternative
materials from multiple aspects, and it is especially important toensure that the alternatives connect the components electrically

33.50

Maximum loadthese components electrically. In replacing lead solder with lead-free

250

34.05

33.35

32.85

32.00

33.13
31.86
28.82

28.20

750

1000
(Times)in a proper manner.
In FY 2006, we started to adopt lead-free solder after examining

0First time

250

500

the reliability test results, especially focusing on the reliability of theelectrical connection. As a result of the examination, we wereassured that lead-free solder is just as reliable as lead solder.

In January 2005, we started to use lead-free solder for cables
and harnesses on our CLEAN TRACK™ LITHIUS™, which is ourIn the examination, we conducted a temperature cycle test to

major coater/developer for immersion lithography. Subsequently,

study the impact of thermal changes on parts. We checked how thein March 2006, we adopted lead-free electronic control circuit

outer appearances, electrical functions, and adherence of the sol-boards. The changeover to lead-free cables and boards has also

dered parts were influenced by these changes, and examined

been implemented for other products manufactured by Tokyo

cross-sections of soldered parts. In the temperature cycle test,

Electron Group companies, including thermal processing systems,

we repeated the cycle 1,000 times to simulate over 20 years of use.

plasma etch systems, surface preparation systems, and wafer
probers.

Photos Showing Cross-sections of Soldered Parts(after 1,000 cycles)

In ever-closer cooperation with its suppliers, the Group will
implement measures to discontinue the use of lead in diverse
parts and materials, such as glass and resin parts, as a part of its
efforts to reduce the use of regulated chemical substances, thereby
making its products even more environmentally friendly.

Lead-free solder

Lead solder

CLEAN TRACK LITHIUS

TOKYO ELECTRON Environmental and Social Report 2006

21

E HS Report

Product-Related Initiatives for the Environment■ Asbestos

checkups on a continuing basis.

We checked the use of asbestos in all our products. As a result, it

We checked the use of asbestos in all our parts as well.

was revealed that asbestos was used in power cables for thermal

Some gaskets and sealing materials used in some OEM products

processing systems produced in or before April 1985. We notified

contained asbestos, but we confirmed that the asbestos does notthis fact to the users of these systems in July 2005. We theneasily spread into the air and will not cause any health risks as

measured the amount of asbestos in the air on the site with thelong as the parts containing it are used and maintained in a proper

users’ consent and confirmed that the asbestos does not spread intomanner. The use of asbestos in these parts is not regulated under

the air as long as the cables are used and maintained in a proper man-Japan’s domestic laws. However, we discontinued the use ofner. We therefore reported to our users that the cables containing

these parts starting with the products scheduled to be shipped in orasbestos pose no threat to their health.

after January 2006.

We also asked employees, including retirees, engaged in the

We also checked the use of asbestos in our plant and officemanufacture of these cables to undergo medical checkups, and all ofbuildings and confirmed that none of the buildings contained

them had been through a checkup by the end of March 2006.

sprayed asbestos that can easily spread into the air. When renovating

According to the results, none of them have health problems

or demolishing parts of buildings that might contain asbestos, we takecaused by asbestos. However, we intend to give them medical

drastic measures to ensure that it does not easily spread into the air.

TOPICSTELFORMULA™ Wins the Prize for Excellence from Japan’s
Ministry of Economy, Trade and Industry

New Features of TELFORMULA
1. Shortened heating time

In August 2005, we received the Prize for Excellence for our semi-

The quartz reactor tube, where thin insulating films are

conductor thermal processing system TELFORMULA from theformed on wafers, needs to be kept at a high temperature with a

Ministry of Economy, Trade and Industry at the first award com-

temperature variation within ±1 degree Centigrade. With

petition held by the Ministry to encourage manufacturers to pass on

TELFORMULA, which adopts a newly-developed heater, theand continue to develop Japanese manufacturing skills that support

time required for heating is reduced to one-fourth compared withJapan’s industry and culture. The Ministry pronounced that wethe previous model.

had developed a product that enables highly productive andhigh-quality thermal processing.

2. Shortened film forming time
It is necessary to reduce the internal pressure when thin films

TELFORMULA has the following features: (1) a cycle time thatare formed inside the reactor tube. By adopting a new, rapid

has been shortened to one-fourth compared with the previous

ventilation valve, we have reduced the time required for this tomodel; and (2) introduction of new technology to clean the equip-

approximately one-fifth compared with the previous model.

ment using gas, whereas in the previous model you had to

3. Shortened wafer delivery time

detach the reactor tube from the equipment to wash it in a liquidWith TELFORMULA, wafers are delivered to and removed

agent. Because of thesefrom the reactor tube using an automatic wafer transporter atfeatures, the major semiconductor

high speed and within a short time without any damage tomanufacturers

wafers from vibration. The delivery time, which was 18 minutesof the world have chosen

for the previous model, has been shortened to only one

this equipment for theirminute.

semiconductor manufactur-

Environmental Considerations

ing lines.

In the thermal processing process, the equipment has to wait
until the next wafer is delivered to it. In the past, if the equipment
was turned off during this wait time, it would take time to heat up
to the correct temperature, which meant lower productivity.
However, you can turn off TELFORMULA during the wait time
because it can soon be reheated to the correct temperature. As aresult, you can save approximately 20 kWh of energy per hour.
Certificate of Commendation
granted by the Ministry

22 TOKYO ELECTRON Environmental and Social Report 2006

TELFORMULA

E HS Report

Environmental Initiatives in Transportation
The Tokyo Electron Group is committed to reducing the environmental impact caused by the transportation of its products throughenergy saving and effective use of resources.

■ Our Approach to Environment-Friendly
Transportation■ Changes in Product WeightIn April 2006, Japan’s Law Concerning the Rational Use of Energy

example, our FPD production equipment weighed approximately(“Energy-Saving Law”) was revised and regulations on transportation

11 metric tons about 15 years ago and could be transported onwere strengthened, reflecting an increasing demand for reduc-four trucks. The total weighttions in the environmental impact caused by transportation to preventof our latest model, however,global warming.

is approximately 170 metric

The Group’s products have been getting larger and larger. For

In response, the Tokyo Electron Group has been actively

tons, requiring a special truck

reducing the environmental impact caused by the transportation

and a lot of other vehicles toof its products. For example,

transport the product. The

we introduced low-emission

product

trucks to transport our prod-large because of the increase

ucts and started to use return-in the size of FPD circuit

able containers for their deliv-

boards manufactured using

ery. Also, we give first priority

the product.

has

becomethisto driving safely in delivering
Introducing a low-emission truck

products to customers.

Special truck for transporting
FPD production equipment■ Environmental Impact of Transportation
The revised Energy Saving Law designates shippers who transport 30

TOPICS

million ton-kilos or more a year as specified shippers and demandthat they reduce CO2 emissions from the transportation of their cargos.
The amount that the Tokyo Electron Group transports (in freight ton-

Reducing the Use of Packaging Materials at
Shipment and Reusing Casters

km: weight of major products transported multiplied by their trans-

In the past, we placed each product accessory to be delivered

portation distance) as a whole has been increasing over the years,

to the customer in a separate plastic container and thenalthough it has slightly decreased in FY 2006 over FY 2005, because of
an increase in the number of shipments and an increase in the weight per
product (see “Changes in Product Weight” shown on the right).

packaged each of the containers. Now, however, we place
the plastic containers on a rack, package the entire rack, anddeliver it to the customer. As a result, we have reduced the useof packaging materials by half and the use of buffer material to

The Group delivers precision machines to customers and has to

one-tenth. We were also able to shorten the loading time attransport them carefully. We will measure the transportation

shipment. In addition, the space that the customer needed foramount and distance and CO2 emissions from the transportation ofstoring the cargo was also reduced and it has become easier

our products in a more accurate manner, while examining mea-

for the customer to keep the cargo in good order.
Furthermore, we now remove the casters attached tosures to reduce our CO2 emissions, including a modal shift. In FY

the body of an etch system for delivery and reuse them for

2006, we started to identify the use of gasoline and diesel oil by vehi-

subsequent deliveries.

cles owned by Group companies in Japan.

Freight Transportation Amount(10,000 ton-km)

4,028

3,837

04

05

2,934

0
03

(Year)

Delivery rack

Container for reused casters(Calculated for major domestic products and based on a given load per vehicle)

TOKYO ELECTRON Environmental and Social Report 2006

23

H ighlights

Suppliers’ Environmental Initiatives
The Tokyo Electron Group collaborates with suppliers to reduce the environmental impact of its products.

■ Suppliers Cooperate in Reducing Environmental Impact
The Tokyo Electron Group needs to use environment-conscious parts and materials as the basis to reducing the environmental impact of its products. Accordingly, we established our own green procurement guidelines for the materials and parts that we procure from suppliers to manufacture
our semiconductor/FPD production equipment. The guidelines set out environmental impact reduction criteria and voluntary targets that arereferred to by our suppliers. We will continue to cooperate with our suppliers using these guidelines and by conducting surveys on suppliers’ environmental activities, exchanging information with them, and giving them instructions, in our efforts to reduce our environmental impact as part ofour supply chain management. In this section, we introduce two of our suppliers who are committed to reducing their environmental impact.

■ Supplier’s Environmental Efforts—Aval Nagasaki Corporation

also clearly separates the lead-free line from other lines by using theProcurement from Aval Nagasakicolor green: all the items related to the lead-free line are colored

Aval Nagasaki Corporation develops, designs, manufactures, and sells

green, including slips for lead-free parts, containers for lead-free

its own electronic devices and OEM products. In 1988, the Tokyo

paste solder, trowels for lead-free solder, and even the floor of

Electron Group started to procure printed board assemblies forthe lead-free line. This prevents lead from commingling with lead-freecontrol units for use in semiconductor/FPD production equipment

products. Lead-free solder melts at a higher temperature thanfrom Aval Nagasaki.

lead solder, and lead-free solder tends to peel off the printed circuit

Aval Nagasaki established guidelines on lead-free processes. It

board and the solder surface tends to crack more easily. Aval

Acquisition of ISO 14001 Certification

Nagasaki has overcome these problems by improving the line

Aval Nagasaki acquired ISO 14001 certification for its environmental

management technology based on the results of reliability tests

management system in April 2006. The company measures its

and succeeded in the mass produc-

environmental impact, sets its objectives and goals, and pursues con-tion of lead-free products. In FY

tinuous improvement based on its ISO 14001-certified manage-

2006, the company’s use of lead-ment system. Specifically, it endeavors to discontinue the use of lead

free solder accounted for approxi-

in its manufacturing process and to reduce its consumption ofmately 20% of its total solder use,electricity and chemicals.

but the company plans to increase
the percentage with further use of

Lead-free Initiative

lead-free solder in its own products

In response to requests from the Tokyo Electron Group and to

and OEM products now that it has

regulations implemented in Europe, Aval Nagasaki established aobtained ISO 14001 certification.

Manual soldering using lead-freesoldernew manufacturing line for lead-free printed circuit boards in July
2004. The company then conducted repeated reliability tests on
Lead-free printed circuit boards

the line, started to produce prototypes in February 2005, and finallybegan mass production of lead-free products in May 2005. In
establishing the line, it introduced a nitrogen generator to prevent surface oxidization of the lead-free solder and expanded their dry
warehouse for electronic parts.

Difference in Surface Luster between Traditional Solder
and Lead-free Solder

Our Comments
Aval Nagasaki established a system to mass-produce lead-free printed
circuit boards for use in the Tokyo Electron Group’s CLEAN TRACK LITHIUS,
a coater/developer ahead of other suppliers. The company is able todevelop products that meet each customer’s needs in relation to the RoHS
directive, except for certain parts. Aval Nagasaki is thus supplying productsthat meet the needs of the Tokyo Electron Group. We expect the company
to maintain their efforts for further environmental conservation.

Traditional solder

24 TOKYO ELECTRON Environmental and Social Report 2006

Lead-free solder

■ Suppliers’ Environmental Efforts—SMC Corporationand hexavalent chromium contained in the circuit boards and leadwires of the valves and will eventually discontinue their use.

Procurement from SMC Corporation
Since its foundation, SMC Corporation has been growing as a

Measures to Comply with the RoHS directive (2): Thermo Chiller

general manufacturer of pneumatic equipment, which is powered

For its thermo chiller that is used in coaters/developers (system thatby compressed air and used for a variety of purposes. The Tokyo

supplies chemicals to the equipment under strict temperature control),Electron Group procures pneumatic equipment such as air

SMC is implementing measures to comply with the RoHS directive bycylinders and solenoid valves as well as heat exchangers andremoving lead from the circuit boards and hexavalent chromium fromthermo chiller from the company, and at least 90% of thethe plates. By making major changes to the circuit design, theproducts are customized for the Group.

company discontinued the use of these substances without any extra
cost. It completed the

SMC’s Environmental Policies and Environmental Measuresfor Products

evaluation of a prototype

Based on the policy that conservation of the global environment is one

provide a lead- andof the most important challenges facing humankind and that thehexavalent chromium-company has to contribute to creating a comfortable global

free thermo chiller FY

environment through all of its business operations, SMC acquired ISO

2007.

in June 2006 and plans toPrevious thermo chiller (left)
and the new one (right)

14001 certification in 1999. When the Tokyo Electron Group asked the

responded to the request based on its Green Procurement Guide,

New Methods and Ideas
Learned from the Tokyo Electron Group

which includes policies for the RoHS directive. At present, however,

SMC has been implementing environmental measures intheir products contain parts in which other substances of concern arecooperation with the Tokyo Electron Group. In the course of thisused. Regarding their use of these substances, the use of hexavalentcooperation, it learned the concept and methods of change

chromium in chrome coatings has the highest environmental impact,

management (management of risks associated with changes

followed by the use of lead in solder and various metals, and the use

made to the design of a product, its parts, processes, etc.) fromof PBBs, PBDEs, and cadmium in resin parts. Although industrial

the Group, which marked a turning point for SMC. Without the

products, including pneumatic equipment, are not subject to the RoHS

introduction of this method, SMC might not have been able todirective, SMC is implementing measures to reduce or discontinue

manage changes made to comply with the RoHS directive.

company to discontinue the use of lead in its products, SMC

the use of these substances in response to its customers’ requests.

SMC’s Future Environmental Measures
Measures to Comply with the RoHS Directive (1): Solenoid Valves

As a precondition for companies to continue in businesses, they have

The Tokyo Electron Group uses a

to conserve the global environment. SMC believes it possible to meet

lot of solenoid valves in its

this requirement by using its comprehensive technological ability. For

products. Solenoid valves areexample, when depletion of the ozone layer by CFCs became a social

used to control the flow ofconcern, SMC was the first to develop a product using a newcompressed air supplied to air

refrigerant that contains no chlorine, which resulted in the expansion ofcylinders and other components.

its share of the market. SMC therefore thinks that it can expand its

SMC is reducing the use of leadbusiness through environmental activities, including those necessary tocomply with the RoHS directive and to promote green procurement.

Our Comments

Explaining SMC’s measures at the interview
Mr. Yoichiro Okada, Green Procurement
Secretariat, Technology Division, SMC Corporation

Solenoid valve

SMC is ahead of other suppliers in setting out specific change management
criteria for multiple parts and in filing related applications. In response to anincreasing demand for environmental measures, including RoHS directive-related
measures, the Tokyo Electron Group was able to identify and take relevantmeasures in cooperation with SMC and plans to make further progress inenvironment-friendly management and operation based on this experience.

TOKYO ELECTRON Environmental and Social Report 2006

25

E HS Report

Plant and Office Initiatives for the Environment—Preventing Global Warming
The Tokyo Electron Group is reducing its energy use to contribute to the prevention of global warming.

■ Reducing Energy Consumption

Electricity Consumption

The Group is committed to reducing its energy use in compliance(100,000 kWh)Japan

with the provisions of the Energy Saving Law. Its sites are actively
148 160 150

reducing their energy consumption by setting specific energy-saving

ciency. Also, they completely shut down the machines during
long holidays.
At TEL’s Yamanashi Plant (Hosaka),
we have installed a hybrid power genera0

system is used to light two lampposts

97 98 99 00 01 02 03 04 05 06

1,631

0

97 98 99 00 01 02 03 04 05 06

Gas Consumption(1,000 m3)

1,146

1,665

967 958

(kl)

LPG

Gas

1,062
996
990 990942
908

Hybrid power generation
systemapproximately 2.5 kWh per day).

1,881 1,828 1,838

Kerosene Consumption

within the premises of the plant, resulting
in lower electricity consumption (by

1,916
1,652

2,396
2,345
2,181
2,191
2,151
1,858
1,501
1,212
1,206
1,089

appropriate temperature control), while improving their work effi-

solar power. Electricity generated by this

126

2,430

192

101

targets for lighting, OA machines, and air conditioners (throughtion system that uses both wind andHeavy Oil Consumption

Overseas (kl)■ Energy Consumption

838

In FY 2006, as in FY 2005, our total energy use increased due to an
364

738
658
545

403 389

increase in production quantities. However, we were able toreduce per-unit energy use and achieved the target of reducing
the energy use per unit sales by 1% compared with the previous fis-0

cal year. We will continue to improve on our energy-saving measures.

97 98 99 00 01 02 03 04 05 06

62 60 66 70 50 59
0 74 72 55 59 66 66 63 58 56 110
97 98 99 00 01 02 03 04 05 06(Plants in Japan and overseas)

At the Yamanashi Plant, the amount of LPG used for decontaminating the process gas increased and energy use almost doubled
from FY 2005.

■ Reducing the Use of Greenhouse Gases other than
CO2

In FY 2006, we have included data on emissions from places in

We use perfluorocarbons (PFCs) and sulfur hexafluoride (SF6),

Japan where our field engineers were stationed in the calculation ofwhich are greenhouse gases, in dry etching, washing, and otherCO2 emissions from our sites, referring to the guidelines for the cal-processes during process development and process evaluation.
In FY 2006, we used 12,643 metric tons of greenhouse gases

culation of greenhouse gas emissions from business entities pub-(as CO2 equivalent), which is substantially larger than the amountlished by Japan’s Ministry of the Environment.

used in fiscal 2005 (7,422 metric tons). This was because the

Total Energy Consumption (in CO2 Equivalent1)
CO2 emissions (in Japan)
CO2 emissions (overseas)(%)
Figures based on energy use per unit of sales in FY 19982
Energy use per unit of sales in comparison with the previous fiscal year3 401
208.0
193.1
197.0
168.2
147.5
150.9
134.7
135.5

<t-CO2>

95.8

104.4

150.8

Greenhouse Gas Consumption(t-CO2)

10,082

87.7

91.9

98

00

3,106

Other
56
Other
19

4,681

6,740
6,682

94,00984,761
01

Other

SF6

7,422

92.8

65,81752,456
99

Other
18
9,162

89.3

50,48845,92297

PFCs

12,643

78.4

0

HFCs

105.6
87.1

100.0

types and volume of gas used for product evaluation increased.

02

95,487
95,48603

04

100,941
104,110
05

06

6,297

1. Calculated based on the guidelines for the calculation of greenhouse gas emissions from business entities publishedby Japan’s Ministry of the Environment
2. Energy use per unit sales in FY 1998 =100%
3. Percentage of per-unit energy consumption in the current fiscal year to per-unit energy consumption in the previous
fiscal year
(Plants in Japan and overseas)

26 TOKYO ELECTRON Environmental and Social Report 2006

3,236

0

1,856
0

1,468
03

1,284
1,140
04

784
05

322

1,620

06
(Plants in Japan)

E HS Report

Plant and Office Initiatives for the Environment—Waste Reduction andRecycling
The Tokyo Electron Group is working to minimize the generation of waste and improve its waste recycling rate to reduce its
environmental impact.

■ Our Approach to Waste Reduction and Recycling■ Breakdown of Waste

The Tokyo Electron Group is making concerted efforts to reduce theLiquid waste from chemicals used in the product development

generation of waste based on the policy of minimizing waste gen-and evaluation processes accounts for the largest percentage oferation, recycling generated waste as much as possible, and properly

waste generated by the Group. At present, most liquid waste is recy-

disposing of unrecyclable waste. In recent years, due to the lack ofcled. Also, some plants have installed equipment to treat liquid

waste landfill sites, landfill costs have surged. This pushes us to makewaste inside their premises.

cost savings to reduce the generation of waste.

We plan to introduce thisSpecifically, we sort waste for recovery, change our manufacturing processes to generate no waste, use more recycling compa-

equipment to a greater number of plants in the future.

Breakdown of Waste (%)
Drink containers 1General waste(collected by
the administration) 2
Wood scrap andpackaging materials 3

nies, check the qualifications of companies that we commission to

Plastics 6

dispose of waste, and regularly review the final disposal situation.

Paper 6

Also, at our plants, we show how to sort waste in an easy-tounderstandmannerusing

Kitchen garbage 1
Other 3

Metallic/product waste
11

illustrative

Liquid waster
67

posters. For example, Tokyo Electron U.S.
Holdings Inc. in the United States recycled
32 metric tons of paper by encouraging
employees to make effective use of waste■ Zero Emissions

paper through educational posters.

We define plants where less than 2% of waste generated by theplant is incinerated or landfilled as “zero emission plants” andencourage all plants to achieve zero emissions. In fiscal 2006, all the
An educational poster

manufacturing plants excluding the Tohoku Plant achieved zero
emissions consecutively from the previous fiscal year. In the
future, we will also achieve zero emissions at our office facilities.

■ Waste Generation and Recycling Rate
In FY 1999, the Tokyo Electron Group set a target of increasing
the entire Group’s average recycling rate to 95% by FY 2006. As aresult of making efforts to attain this target, we achieved a recycling
rate of 96.1% in FY 2005 and 96.4% in FY 2006. In the future, we

TOPICS
Reducing Waste at the Tohoku Plant
TEL’s Tohoku Plant reduced the total generation of wastefrom more than 900 metric tons (including recyclable

will focus on reducing our overall generation of waste, including recy-

waste) in FY 1997 to approximately 400 metric tons in FY

clable waste.

2006, an approximately 56% reduction. Unfortunately, however, the plant could not maintain its zero emissions in FY

Recycling Rate and Generation of Waste

2006 from the previous fiscal year, because its recycling

Generation of waste (incinerated and landfilled)
Recycling rate
96.1
93.1

(t)

(%)
96.4

Target recycling rate for FY 2006: 95%

rate dropped due to debris generated from repairs tofloors. Nevertheless, the plant is determined to maintain ahigh recycling rate and examine measures to reduce its
total waste generation.

Waste Generation and Recycling Rate at the Tohoku Plant

77.4

(t)

69.7

Recycled amount
Recycling rate

55.2
59.9

49.7

59.8

40.9

96.5

Industrial waste

97.0

General waste

98.0

96.6

423.8

385.9

8.5
05

13.7
06

(%)

766.3
517.2
15.3
4,238
0
97

521.0

6.2
4,772
98

3,189
99

3,179
00

3,657
01

3,938
02

3,268
03

847
04

431
469
0
05
06
(Plants in Japan)

0

136.5
97

19.0
03

15.9
04

0

TOKYO ELECTRON Environmental and Social Report 200627

E HS Report

Plant and Office Initiatives for the Environment—Resource Conservation
The Tokyo Electron Group is reducing its use of paper and water to conserve resources.

■ Approach to Resource Conservation■ Efforts to Reduce the Use of Water

We are minimizing our use of resources based on the concept ofAt our manufacturing plants, various measures are being taken to

green procurement, which means to give preference to environment-

reduce the use of water. For example, the plants have installed aconscious products in purchasing. Specifically, we are reducing

water recirculating system to reuse cooling water. They have also

the use and purchase of copy paper and stationery, and when we

installed automatic faucets in restrooms and other facilities. Thesepurchase them we choose environment-conscious products. At

touch-free automatic faucets prevent wastage of water by auto-

our offices, we have replaced printer toner cartridges with car-matically shutting off the supply when the hands are removed

tridges made from recycled materials and cooperate with thefrom the sensor range.

manufacturers in the recovery of end-of-life cartridges. At someoffices, using the intranet, we have established a system underwhich

stationery

Water Consumption(1,000 m3)

Industrial waterno

Tap water

longer being used by acertain department can

817

be reused by another

770

812
89

527

445

391

290

325

332

98

99

00

693

department.

Recycling box on the intranet

Underground water

1,039
88
62

972

1,004
67

146

119

436

388

474

390

430

415

01

02

1,014
107
64

Overseas use

1,004
70

1,095
115
92

106

486

437

357

391

506

521

■ Efforts to Reduce the Use of Paper
The entire Group is committed to reducing the use of paper. In FY
2006, as a result of encouraging duplex copying, copying at

097

reduced size, and digitization of information and documents circulated
among employees, we reduced the use of copy paper by approximately 9% over the FY 2005 level as a whole (approximately 8.3 million sheets saved during the year). Also, we encouraged the use of

382

172
03
04
05
06
(Plants in Japan and overseas)

TOPICS

recycled paper with the exception of some special-purpose

Reduction in Water Use at the Koshi Plant inKumamoto

papers, and introduced paper cups made from kenaf, which is an

At TEL’s Koshi Plant, underground water accounts for mostalternative to wood pulp. We will continue to reduce the use of copy
paper in our business operations by minimizing the number of dif-

the water used by the plant, which is implementing rigorous measures to prevent the depletion and pollution of undergroundwater. The workers at the plant have taken the initiative inferent types of records and slips, thereby further reducing thereusing cooling water and vacuum pump sealing water and in

total paper use.

introducing vacuum pumps that do not use water. Also, theplant conducts activities to minimize the use of non-industrial
water. Recognized for its water conservation efforts, the plant
received the Higo Water Conservation Prize from the Higo
Water Conservation Fund in FY 2005.

Copy Paper Consumption(1,000 sheets)

Manufacturing plants

Office facilities

131,500
19,350107,367
18,30095,785
18,617

87,63418,184

94,217
17,41785,852
16,038112,150
89,0670

01

02

77,16869,45003

04

76,80005

69,81406(Plants in Japan)

28 TOKYO ELECTRON Environmental and Social Report 2006

Vacuum pump that uses
recirculated water

Vacuum pump that does not usewaterE HS Report

Plant and Office Initiatives for the Environment—
Management of Chemical Substances
The Tokyo Electron Group is committed to the proper management of chemical substances and to reducing their emissions.

■ Our Approach to the Management of Chemical
Substances

Handling of PRTR Law Class 1 Designated Chemical
Substances(kg)

The Tokyo Electron Group uses chemical substances mainly indeveloping and manufacturing products. In developing products, we

How Chemical Substances are Handled
Released

Amount1

Transferred

2,275

sometimes adopt new chemical substances that were not used

Consumed24

before, or use chemical substances in a way that is different from theRemoved3,070

Recycled

2,818

traditional usage. In these cases, we look closely at the development

Total

8,188

facilities and methods, assess the environmental and operationalrisks associated with the use of the substances, and implement necessary measures before actually using the substances. As for thechemical substances that we use in our manufacturing processes,

Material Balance of Chemical Substances Regulated
under the PRTR Law
Released into the air: 1 kg/year

Released into water: 0 kg/year

we are replacing dangerous and harmful substances with safer ones.

TEL

Handled
8,188 kg/year■ Compliance with the PRTR* Law

Products
24 kg/year

According to the provisions of the Law Concerning Reporting, etc. of
Recycled: 2,818 kg/year

Releases to the Environment of Specific Chemical Substances andPromoting Improvements in Their Management (PRTR Law), we
rigorously control the specific chemical substances regulated under the

Waste: 2,271 kg/year

On-site landfill:
0 kg/year

Removed: 3,070 kg/year

Transferred to sewage: 4 kg/year

law and identify the use and emissions of these substances on a continuous basis. We use large amounts of hydrogen fluoride, which is one■ PCB Storageof the substances regulated under the PRTR Law, mainly for cleaning

Based on the Law Concerning Special Measures Against PCB Waste,test wafers. The hydrogen fluoride waste is disposed of by an

we report on the storage and disposal of waste containing polychlori-

external company specializing in disposal or we dispose of it in thenated biphenyl (PCB) to the governor of the prefecture every year.

approved manner within our premises. We also use a considerable

The Tokyo Electron Group presently stores two waste transformers andamount of ethylene glycol as a refrigerant for cooling water andfour waste capacitors that contain PCB in a strict and secure manner.

recycle almost all of its waste. We will continue to properly manage the

TOPICSrisk associated with the use of chemical substances.
*PRTR stands for Pollutant Release and Transfer Register. Under the PRTR system,
the use of chemical substances that may be hazardous to human health and theecosystem, their release to the environment, and transfer (contained inwaste) to the outside of the business premises entities are identified, tabulated,
and announced.

Amount of PRTR Law Class 1 Designated Chemical
Substances Handled
Numberinthe Law

Name of Class 1 DesignatedChemical Substance(kg)

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

1
Water-soluble zinc compounds
0
50
0
70
0
3
Acrylic acid
0
0
0
20
0
16
2-Aminoethanol
520
430
0
475
0
43
Ethylene glycol
1,500 4,000 9,144 6,353 2,80044Ethylene glycol monoethyl ether
120
0
0
0
0
45
Ethylene glycol monomethyl ether
0
0
0
0
3
63
Xylene1800000Diphenylmethane-4,4’-disocyanate
0
0
0
14
24
78
172 N,N-dimethylformamide
290
450
309
131
0
190
120
0
110
0
207 Water-soluble copper salts (except complex salts)
227 Toluene
620
0
0
5
0
260 Pyrocatechol
0
30
0
3
9
283 Hydrogen fluoride and its water-soluble salts 2,470 3,690 4,558 3,553 4,811
304 Boron and its compounds
0
0
0
0
1
311 Manganese and its compounds
0
900
450
610
540
Total
5,890 9,670 14,461 11,344 8,188* Weights are shown in metric tons for FY 2002 and 2003.
(Plants in Japan)

Management of Special Gas
In our product development and evaluation processes, we use liquid
chemicals and special gas to simulate the actual semiconductor manufacturing process. Because some of these special chemicals are hazardous to both the environment and human health, we strictly control
their use, including the careful management of devices that use thesechemicals. At the Kansai Technology Center located in Amagasaki City in
Hyogo Prefecture, we check the devices that use special chemical substances daily or regularly so that we can detect any problems without fail.
We have established a system to deal with any possible problems. For
example, in the event of a gas leak, the gas detection system triggers an
alarm and stops the supply of gas. Also, we notify workers of any problemsby the use of sirens, automatic
broadcasts, and message
boards that are put up within
the clean room, at theentrance, and in the officeroom of each plant to show
important information in realtime.
Message board

TOKYO ELECTRON Environmental and Social Report 200629

E HS Report

Health and Safety
We are promoting health and safety for all our stakeholders, including employees and customers, in every aspect of our business
operations, believing that we should ensure the health and safety of our employees as the basis for a comfortable workplace and as
one of our corporate social responsibilities.

■ For the Safety of All■ Preventing Accidents

The Tokyo Electron Group believes that it should ensure the

In FY 2006, the number of occupational accidents at the Tokyo

health and safety of all employees working for the Group, cus-

Electron Group slightly decreased over the FY 2005 level. The

tomers who use the Group’s products, and all other stakeholders inwork volume, however, increased in accordance with an increase inits business operations as one of the Group’s corporate social

production quantities, and factors that can cause occupational

responsibilities.

accidents are on an upward curve. According to statistics on the

In FY 2006, the Group held a total of six safety seminars for top

trends of accidents in the Group, ergonomic factors* account for

managers (vice presidents of Group companies) at its plants. The

approximately 30% of all risk factors. As equipment becomesseminars were divided into three sessions. In the “theory” ses-larger and more complex, employees are forced to work in unnaturalsion, participants learned about the necessity of taking an organiza-

postures and they have to manhandle heavy objects, which bringtional approach to human factors, as well as risk management. In the

new risks to employees. We are implementing countermeasures“practice” session, they listened to the opinions of workers andagainst this problem.

learned about on-site safety problems, and in the “discussion”* Ergonomic factors mean risk factors associated with heavylabor, repetitive movements, and unnatural postures, which may
cause musculoskeletal disorders in employees who are engaged inthese activities over a long time.

session, they discussed how to build a safety culture across theGroup.
Managers

participating

in

the

seminarscommented,“Employees are now more aware of safety, but it seems difficult tokeep them committed to safety,” and “Managers must first commit

Frequency of Occupational Accidents and Number of
Injuries(Number of injuries)

themselves strongly to safety and communicate the importance(Frequency)

Average for all industries in Japan
Average for Japan’s electromechanicalmanufacturing industry
Target for the number of injuries

of safety to employees by

Average for Japan’s manufacturing industry
Average for the Tokyo Electron Group
Number of injuries that occurred in the Groupestablishing the appropri-

100

ate

1.82

1.79

1.77

1.78

1.85

1.02

0.97

0.98

0.98

0.99

1.01

48
0.34

41
0.36

37
0.35

43
0.39

39
0.40

0.18
02

0.15
03

0.24
04

0.39

0.32

05

06

organizationalandmanagerial systems.” In
FY 2007, based on the33

results of the seminars,

0.38
0.38

we will hold seminars for
middle managers.

001

Safety seminar for top managers

1.95

0

* The number of accidents is shown, taking the number in FY 2001 as 100.
* Frequency of occupational accidents: Number of occupational accidents per one
million labor hours = Number of accidents resulting in at least four days
absence/Total labor hours x 1,000,000

TOPICS
Safety First Slogan Campaign
In FY 2006, the Tokyo Electron Group asked its employees to pro-ing handy “safety first” card, copies of which are distributed topose a slogan under which the entire Group would give first prior-

employees, thereby making them more aware of safety in their

ity to safety while listening to the opinions of on-site workers.

daily work.

From among more than 600
proposals, we chose the bestslogans and also awarded a special prize to a proposal made by agroup of employees. We createdsafety-first posters using theselected slogans, which are now
put up at the workplaces. We
also printed the prize-winning
slogans on the back of the existHandy “safety first” card

30 TOKYO ELECTRON Environmental and Social Report 2006

“Eye Catch Safety” poster■ Example of Safety Measures—Ergonomic Approachto the Wafer ProberAs shown by recent trends in occupational accidents, ergonomic factors account for a larger percentage of occupational risk factors. As
the background to this, wafers and circuit boards are being
upsized and so the size of production equipment is also expanding.
To cope with this, the Tokyo Electron Group is implementing the necessary measures for its products.
For example, we have introduced measures for the wafer
prober*. In recent years, the test head used in conjunction with theprober has been increasing in size and employees have to manhandle* Wafer prober: Connected to a tester (manufactured by an outside company) to electrically test the ICs on wafers by touching theirelectrodes with a probe needle.

Improvements Made through Analysis of the Work Risks
Work Details

Improvements

Unload the heavy test head from the cart and The tester manufacturer has redesigned theload it on the automatic lifter
cart so that the test head can be raised or lowered by handles, and workers no longer need tomanhandle the heavy test head (see Improvement 1 below).
Install the attachment plate (weighing about 60 The wafer prober is now shipped in a differentkg) on the test head
form, and workers no longer have to manhandle
the heavy object.
Attach the cable bundle (weighing 30 kg or The lifting weight of the bundle was measured
more per meter) to the clamp partand it was divided into smaller bundles to reduce the work risk.

this heavy head, which has increased the ergonomic risk during
their work. Of late, test heads weighing more than 500 kg are notrare. Employees cannot position such a heavy object easily and

Improvement [1]Redesigned cart with handles to raise or
lower the test head

Improvement [2]Shipped with the attachment plate
installed

their work risks have been rising. In response, we analyzed the
Attachment
plate

risk associated with the traditional attachment and adjustment
methods for the test head and fed back the results to the design
department and the manufacturers of the testers. In cooperation with

Lower

Raise

them, we devised and implemented measures to eliminate or
reduce the associated risks. The specific improvements areshown in the table on the right.
The Group—especially its design section—will continue tocooperate with the manufacturers of various testers to promote
safety from the design stage based on risk analysis and othermeasures.

TOPICSTeam Resources Management Training
As equipment increases in size, the number of workers dealing
with the equipment also tends to increase, and as the number ofworkers increases, it becomes more difficult for them to communicate with each other. Under these circumstances, safety activities
and education need to be conducted focusing on human relations, and thus we developed a new educational method called
Team Resources Management (TRM) jointly with the Japan
Institute of Human Factors. TRM was built on Crew Resources
Management (CRM), which was developed to teach flight crew
members how to use all available human resources, hardware,and information effectively for high-level teamwork on board an airplane.
The TRM training targets on-site work leaders. In the TRM
training, the leaders are trained in communications, team building,and situation assessment. They also practice teamwork within aclean room. The number of participants in the training is limited toaround 10 on each course. Therefore the numbers who havecompleted this training are still low, but we will continue to provide
the courses to train as many leaders as possible so that they will
understand the importance and difficulty of communications,
teamwork, and situation assessment, something that they haveall done without a second thought. The training will also enable
them to recognize that they can improve their activities by intentionally modifying their
behavior. We hope that
this training will improve
on-site communications
and teamwork.

TRM training

TOKYO ELECTRON Environmental and Social Report 200631

S ocial Report

Relationship with Employees
Our personnel system allows employees to take on various challenges.

■ Concept of the Personnel System■ Providing Employees with Comfort in the Workplace

The Tokyo Electron Group respects a spirit of challenge and inde-

The Tokyo Electron Group is committed to providing employees

pendence amongst its employees and aspires to be a corporate

with a comfortable workplace. For example, we try to ensure thatgroup in which employees can take on a variety of challenges.

employees do not work too much overtime. At each workplace, theBased on this, we are improving the working environment to attain the

manager in charge identifies the overtime hours for each employee

following three targets: (1) no penalizing of employees who failand takes action to reduce the hours. In the month following awhile taking reasonable risks in creative endeavors; (2) rigorous fairness

busy month in which employees worked much overtime, thein handling of our personnel; and (3) fairness in compensation. Our per-manager encourages them to take paid holidays and ensure that nosonnel system is designed to motivate the organization and help

one works disproportionately more than others. Also, we haveeach employee develop him/herself. The system does not simply

established some rules to provide employees with a better working

focus on the results, but also attributes importance to the process lead-environment, including the introduction of a no overtime rule on

ing to the results. Our goal is to fairly evaluate employees based on

Wednesdays.

their contribution through the three mainstays of “competency to

For maternity and childcare leave, we have improved the systemassess processes,” “the individual’s role (mission),” and “results

so that both male and female employees can easily take childcare

based on the employee’s role (performance).” Competency is not justleave by simply applying to their manager. In FY 2006, a total of 40

the objective of assessment and inspection, but a measure of theemployees took childcare leave.

growth of the employee’s skills and abilities required for task cate-

We have also improved thegories. We will always support our employees in their efforts toworking environment for employees

improve themselves and provide them with opportunities towith disabilities. At our sites, we areupgrade their skills and advance their careers.

establishing facilities for the disabled,

Concept of Our Personnel System

including barrier-free access and toilet facilities for physically handi-Company
Mission
Performance
Indicate company goals and Reward performance helping todirections
reach company goals withcommensurate compensation

Competency
Offer careers and opportunities tobuild skills needed to meet thecompany’s goals

Mission: The individual’s role
Competency: Competency to assess processes
Performance: Results as based on employee’s role
Competency
Obtain expertise offer aprofessional attitude

Performance
Provide performance that helps
the company reach its goals

Competency
Polish up professionalism toobtain higher salaries

Employees

capped people, thereby increasing
the employment of people with disabilities within the Group.

Toilet facilities for physicallyhandicapped people■ Test for Employees Wishing to Change Work
CategoryIn the Tokyo Electron Group, office employees are classified into two
categories: those engaged in routine work and those engaged in
more versatile tasks. For those who are engaged in routine work but■ Motivating Employees

have sufficient abilities and the willingness to take on more versatile

We conduct two types of employee surveys once a year: a personal sur-tasks including planning, negotiation, and making comprehensive

vey in which employees describe any job changes they would like todecisions, we administer a test comprising essay writing, a written

make, their hopes and opinions about the company, and advice theyexamination, a presentation, and an interview, and those who met

would like to ask for; and a morale survey in which employees

the absolute evaluation criteria of the test are allowed to change theirdescribe their view of their own morale levels and ideas about their orga-

work to more versatile tasks. We value willingness, awareness as a

nizations and workplaces. In the morale survey held in FY 2006,

professional, determination, and future potential in the evaluation. In

employees were asked for their opinions on management policies,

FY 2006, seven employees passed the test and changed their

their jobs, safety and health, their working environment, their bosses, andwork category. We will continue to provide highly motivatedthe company’s evaluation of them, and the survey results were posted

employees with an opportunity to change their work categoryon the intranet as feedback to employees. In addition to the surveys, weunder this system.

have introduced an in-house staff recruitment system to help employees
decide on and pursue their own career paths, which matches employees
wanting to improve their careers with departments in need of staff.

32 TOKYO ELECTRON Environmental and Social Report 2006

S ocial Report

Communicating with Stakeholders
Communicating with our stakeholders helps us grow as a group.

■ Our Approach to Communication■ EHS Seminar in Taiwan

The Tokyo Electron Group proactively promotes communication

In May 2005, the Tokyo Electronwith its stakeholders. We think it indispensable to disclose infor-

Group held a TEL EHS Seminar inmation about our business operations as much as possible to all our

Hsin-chu City in Taiwan inviting its

stakeholders and interact with them through information disclo-customers in Taiwan. The Groupsure and the acceptance of feedback in running our environmental,

has been organizing this seminarhealth, and safety activities. As part of our efforts, we cooperate within Taiwan since 2001, and the May

local schools and accept their students to our sites for work expe-

2005 seminar was the fourth one.

rience.

Before the seminar, we asked par-We have been publishing environmental reports since 2000. We

ticipants to answer a question-

environ-naire on the seminar contents andmental, health, and safety

based on the results, we arranged ainformation on our web-seminarsite and plan to continue

approach to EHS, actual

these efforts actively in

EHS activities, reduction

the future.

in the use of regulated

also

disclosethatfocusedonBrochure distributed at the seminar

ourchemical substances inour products, and EHS
Student on work experiencemeasures for each of
our products.

■ Sharing Information through EHS Times and theIntranet

peopleThe Tokyo Electron Group publishes the EHS Times, a bimonthly in-

the fourth seminar than in the previous

house magazine that reports on the discussions in relevant Groupseminar, especially those who werecommittees and introduces the environmental, health, and safety

directly involved in the use of our prod-(EHS) activities conducted by the Group’s companies, plants, anducts. These participants gave their opin-

offices in an easy-to-understand manner. Individual Group companies

ions from the viewpoint of direct users

and sites have their own in-house magazines and use them toof the products and an active Q&A session

raise employees’ EHS awareness and share relevant information.

was conducted at the seminar. Participants

We use the intranet for speedy disclosure and sharing of EHS

were particularly interested in the safety of

information within the Group.
The Group’s EHS activities are also introduced via brochures forshareholders and investors and the annual reports.

A greater number ofparticipated

EHS Seminar held in Taiwan

inour products.

Results of the survey

Customers participating in the seminarevaluated it highly, with comments such as, “It was easy tounderstand,” “I could understand the Tokyo Electron Group’s
approach to EHS and relevant measures,” and “I could obtain
new ideas and inspirations from the seminar.” Many asked us to continue the seminars so that they can keep informed of the Group’s
safety measures for its products and examples of reducing theenvironmental impact.

Introducing EHS activities in the Annual Report

TOKYO ELECTRON Environmental and Social Report 200633

S ocial Report

Communicating with Stakeholders■ Our Approach to Social Contribution

the City. This activity allowed the Plant to deepen its relationship withThe Tokyo Electron Group states the following: “We place thethe city government and contribute to local communities. The firsthighest priority on gaining the trust and acceptance of customers,

clean-up activity conducted on June

suppliers, investors, and communities around the world” and6, 2005 was introduced in the“We therefore strive to be a faithful and cooperative member of theAugust 2005 issue of the City’scommunities and nations where we do business.” We are

public magazine and a poster intro-

engaged in a variety of activities to contribute to society and build

ducing the activity was put up in

relationships of trust with governments and local communities

the playground in the central park.

Poster put up in the central park

around its facilities. This is true in Japan, of course, as well as
overseas. These efforts are based on the above principles. We■ Social Contribution Overseas

will expand our activities, hand-in-hand with our customers andTokyo Electron (Shanghai) donates money to local orphanages as partneighbors.

of its social contribution activities and as a means to teach its
employees how to express their■ Social Contribution in Japan

thanks to society. At the New

The Fujii Plant (in Nirasaki City, Yamanashi Prefecture) participates inYear’s party, the company holds a

the Nirasaki City’s local clean-up program. Under the program,bingo game and employees andlocal inhabitants (and companies), supported by the city govern-

their family members participating

ment, clean local public spaces including roads and parks at least six

in the game purchase a bingo card

times a year to make the city a more comfortable place to live in withfor 10 yuan. All the proceeds fromno trash or litter in the streets. The City named this program

the sales of cards are donated to“Adopt Program,” hoping that citi-

the orphanages. At the New Year’s

zens will take good care of public

party held in January 2006, 3,630

places in the same way that theyyuan (approximately ¥55,000) was

take care of their own children.

collected and all the money was

Plant employees participated in
Employees cleaning the park

donated to orphanages.

activities to clean the central park in

Employees enjoying bingo

Jay Chen, President andRepresentative Director of Tokyo
Electron (Shanghai) Limited
holding a certificate of donation

TOPICS
Planting Trees—Tokyo Electron Kyushu celebrated its 20th
anniversary by planting trees on Mt.
Tawara in Aso to create a forest to protect the watershed.
Watershed protection forests play animportant role in water conservation andwater purification and these forests are
Employees and their families
called “green dams.” The headwaters ofplanting trees
the six major rivers running through the five prefectures in the central andnorthern parts of Kyushu are located in the Mt. Aso area where the trees wereplanted, and at least three million people are supplied with water from theserivers. In recent years, however, the volume of spring water has been decreasing
due to a decrease in the amount of waterretained, which has been caused byurbanization and use of water for farmland(rice paddies). The company planted trees toincrease the amount of water retained inGroup photo

34 TOKYO ELECTRON Environmental and Social Report 2006

order to protect limited and valuable water resources. This year, 227 employees andtheir families planted 1,000 broadleaf trees, including mountain maple, wild
cherry, and sawtooth, on land extending over 0.3 hectares. The planting activity will
be conducted over a time span of five years (three years for planting and two years
for growing). Participants made comments like, “The whole family enjoyedplanting trees together,” and “It gave me a chance to think about the environment.”

Hiroshi Hasebe
Purchasing Dept.
Tokyo Electron Kyushu Limited
I participated in the planting activity with my four-year-old son. We
planted as many as 26 trees. My son is looking forward to visiting
the planted area again to look for beetles and stag beetles in thetrees.

Mihoko Inada
Quality Assurance Dept.
Tokyo Electron Kyushu Limited
Mt. Tawara was not a familiar area for my parents-in-law. However,after taking part in the planting activity on the mountain, they now
say, “We will think about those trees whenever we pass nearby.”

Comments from a Stakeholder
We received comments from Mr. Tomine on our2005 Environmental and Social Report.

Tetsu Tomine
Manager, Energy Saving Section
IC/CS Quality Assurance Dept.
(The Environment)
Semiconductor Operations Division
Seiko Epson Corporation■ Social Contribution by Tokyo Electron U.S. Holdings, Inc.

(1) Comments on the Environmental and Social Report

Receiving the Industry Leadership Award

The report outlines the Tokyo Electron Group’s activities briefly. I find the report

Tokyo Electron U.S. Holdings Inc. (TEL USHD) received theattractive in that it specifically describes the Group’s activities and how it imple-

Industry Leadership Award from Keep Austin Beautiful (KAB) in

ments its commitment to the environment. Also, the report explains technical2005. This award is granted to citizen groups and other cooperative

matters in a way that is understandable even to customers who are not familiar withthe technical details. In particular, I was impressed with the Group’s commit-

organizations that have greatly con-ment to energy-saving equipment. The Group is strongly determined to meet its cus-

tributed to KAB’s activities in the

tomers’ needs through the concerted efforts of its workers. In addition, thefields of local beautification, mitiga-

report clearly shows what the Group should do, including giving considerations totion of pollution, and reduction insafety and health-related matters. Also, the Group’s top managers express theiremissions. KAB highly evaluatedopinions on specific issues in detail in the report. Reading this report, I can

TEL USHD’s planting, nature conservation, clean-up, and alternative

understand how the Group focuses on fulfilling its corporate environmental andReceiving the Industry LeadershipAwardenergy use activities.

social responsibilities.
(2) Comments on the Tokyo Electron Group’s EHS Activities
I was impressed with the Group’s commitment to their customers and the envi-

Sponsoring “Japan and Nature—Spirits of the Seasons”
TEL USHD sponsored an exhibition held by Austin Children’sMuseum last year, which was titled “Japan and Nature—Spirits ofronment and also with its strong sense of responsibility to ensuring the safety andhealth of its employees. I can understand that the Group thinks that the starting
point for ensuring safety for its customers is ensuring safety for its own employees,
and this has deepened my trust in the Group.

the Seasons.” In the exhibition, children made a virtual visit to

In examining the environmental impact of semiconductor factories, I came tofour characteristic places in Japan, Fukuoka, Shiga (Lake Biwa),

realize that the semiconductor manufacturing process is based on an exceptionally

Kyoto, and Sapporo, and enjoyed one

diverse range of technologies. In a semiconductor manufacturing facility, manu-season in one place. Japan’s uniquefacturing devices are connected with each other through input and output opera-

geographicalfeaturesandsightswere introduced through interactive

tions. In manufacturing a variety of semiconductor equipment, the Group isdetermined to face EHS-related problems seriously and give consideration to
EHS as early as from the design stage, and I am quite impressed by their attitude.

media. The number of visitors to the
Exhibit of a Kyoto scene

exhibition exceeded 200,000.

(3) Impression of the Tokyo Electron Group from the Viewpoint of Seiko
Epson
We are pleased that the Group promotes the development of new equipment,
including process technologies, and continues to make proposals to us. We also
expect that the Group will make proposals for improving the equipment that has
been in operation in our factories, in addition to proposals for new equipment, leveraging the results of their technological development. As demonstrated in theenvironmental and social report, the Group is eager to set out an industry standard
and takes the initiative in the activities conducted by the semiconductor industry,including those by SEMI. The Group has indeed established a leading presence in

Message from Will Wynn, Mayor of the City of Austin
TEL USHD is an outstanding

the industry.
(4) Requests and Expectations for the Tokyo Electron Group

corporate citizen for the City ofAt present, we are in a very sensitive situation concerning energy saving andAustin. For example, in recent

environmental conservation, especially the latter. Individual achievements have beenyears, its community outreachmade from various aspects, but these achievements should be integrated to promote

programs and recycling efforts

energy saving in semiconductor plants. It is also true that an individual company

have been honored by Keepcannot be a winner in environmental activities without the cooperation of other com-

Austin Beautiful. TEL USHD’s

panies. I therefore think it important for the entire semiconductor industry to

dedicated support and leadership

improve cost efficiency as part of its environmental measures and I expect the Tokyo
Electron Group to continue to take the initiative in developing and popularizing

really make a difference to thequality of life in our community.
May 2006

diverse environmental technologies and lead other companies in energy-saving

Will Wynn

Mayor of the City of Austin

efforts by the entire industry.

TOKYO ELECTRON Environmental and Social Report 2006

35

Environment, Health & Safety Center
2-30-7 Sumiyoshi-cho,
Fuchu City, Tokyo 183-8705, Japan
Tel:+81-42-333-8249
Fax:+81-42-333-8477
http://www.tel.com
Published: October 2006

Waterless printing, which does not generate hazardous effluents, is adopted
for this report. It is printed with volatile organic compound (VOC)-free inks
on FSC-certified paper containing materials from properly managed forests.

PR44-178