Solutions that create value for customers
Systems for creating value for customers

Responsivenessto customers

By developing and strengthening close relationships with customers through a customer account system,
Tokyo Electron (TEL) is promoting a deeper understanding of customer needs and linking this to thecreation of product development and service businesses in the seamless collaboration with its businessdivisions and development divisions. Moreover, in order to take a more comprehensive and inclusive
approach to meeting customer needs, in cooperation with our corporate divisions we are also promoting
development activities on common themes across the multiple products and functions.
To promote these activities and to improve their efficiency, we are working to build globally unified
systems and operations. For the service division in particular, we have established the Global Service
Committee. Service leaders from each business unit and each overseas subsidiary regularly gather topromote One-TEL service activities. Discussions by the Global Service Committee cover all manner ofsubjects, including improving the technical skills and interpersonal skills of the more than 3,000 fieldengineers worldwide, the localization of start-ups, improving work efficiency using the work-time
management system, and the concept of the Total Support Center. Based on these discussions, theGlobal Field Division takes a central role in promoting the sharing of information and knowledge between
accounts and between overseas subsidiaries, and in the development of optimal operational methods.
In addition to helping create value for customers by improving our ability to make proposals and solve
problems to meet customer needs, we are also contributing to create value for TEL by improving the speed
and efficiency of our business.

Development capabilities beyond product fields

Become the best and sole strategic partner
Priority themes
With the coming of the Fourth Industrial Revolution,a variety of objects are connected to the internet, andanalysis and utilization of big data through AI is advancing.
Applications for semiconductors and flat panel displays
are expanding and customer needs for semiconductor
production equipment are diversifying and increasingin complexity. Against this background, it is essential
to accurately grasp customer needs in order to provide
optimal products and services. Since the establishmentof Tokyo Electron (TEL), we have positioned customer
satisfaction as a key management theme, and haveendeavored to build firm relationships of trust with ourcustomers. Furthermore, TEL proposes integrated solutions
as a manufacturing equipment company deploying multiproducts. We continue to aim to contribute to value
creation for our customers so that they will see us as an
irreplaceable strategic partner.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2018

Along with the advancement of scaling and performance of semiconductors, innovative solutions to
optimize overall manufacturing processes at customer sites are highly required. TEL has been working on
the challenge by taking the advantage of high technological competency as an equipment manufacturer
deploying a product lineup featuring a variety of products.
During fiscal year 2018, we have established a Process Integration Center (PIC). In response to thegrowing technological requirements essential for building a more enriched and prospective society—such
as AI and automated driving, widely spread of IoT solutions—PIC is engaged in extensive research on
innovation by integrated process technologies based on a combination of multiple processes, leading-edge
equipment, and novel materials. The semiconductor trend to 3D structure is one of those innovations. 3D
structure is micro-fabricated with complex elements built in a vertical direction on a wafer, enabled bynumerous repetition of multiple processes such as thin film deposition, lithography, etch, and cleaning.
Utilizing our comprehensive strength with an extensive product lineup featuring a variety of products, weare contributing to the evolution of overall semiconductor manufacturing technology.

TactrasTM VigusTM

CertasTM

Clean
Etch
Solutions thatcreate value forcustomers

Improvement ofcustomersatisfaction

CELLESTATM -i

EXIMTM

Process tools

Relevant SDGs
LITHIUS ProTM Z

Thin film
Lithography
Industry, innovationand infrastructure

Responsible consumption
and production

Trias e+TM

TELINDY PLUSTM
NT333TMTOKYO ELECTRON SUSTAINABILITY REPORT 201822

Responsiveness to customers

Initiatives for integrated proposals

Knowledge management
TEL promotes company-wide knowledge management.1 By sharing knowledge and connecting different
divisions and overseas sites, we are working to share best practices to deliver high-quality services toour customers. In the area of field service, we have built a system that centralizes information on pastequipment issues and allows users to search that information on demand. The system has made it easierto retrieve knowledge on issues, and causes of issues can be predicted with greater accuracy. This has
enabled us to respond to customers more quickly and more efficiently.

1 Knowledge management:
Management approach to promoteinternal company sharing of tacitknowledge held by individuals, inorder to encourage innovation and to
improve overall productivity

For certain equipment that customers want to purchase even though it may have been released 20 ormore years ago, we offer remodeled equipment. Without changing the function of the equipment andby replacing old units and parts with the latest components, we can meet the demands of customers
who want to continue using their equipment for a long time, while maintaining compatibility withexisting processes.
We also offer a new upgrade kit, whereby the functions of latest 300 mm equipment are added
to refurbished equipment. Doing so has enabled us to make productivity and other performance
improvements that outstrip existing models.

Flow of remanufactured equipment
Procurement

Work-time management
We have adopted a global timesheet covering about 3,000 field engineers worldwide. Under this system,
work involved in starting up equipment, repair work and other tasks are managed by entering the typeof task performed and the time required for that task in accordance with certain rules. Introducing thissystem has allowed us to visualize services. By analyzing the work data accumulated through the global
timesheets, we are intent on improving the efficiency of our work and the quality of our service.

Disassembly

Production

Modified parts

Our products
Customers

Respond to
new customer needs

Customers

Skills management
With a goal of upgrading the skills of field engineers and improving the competitiveness of our services, webuilt a company-wide skills management system in accordance with standards established by SEMATECH(a U.S. consortium for the joint development of semiconductors). The system became operational in fiscal
year 2018. By understanding the individual skills of our field engineers, we have been able to systematicallyupgrade the skills of our company as a whole. Moreover, since the skills of each engineer can beascertained objectively, we are able to place our human resources to match the needs of our customers.

Executive message

Meeting diverse needs

The era of the Internet of Things (IoT) has broadened the range of semiconductor applications, and has further
diversified the demands on manufacturing equipment. In response to such needs, we have developed our field
solutions business based on more than 60,000 delivered equipment. Our service commitment is to provide service
that all customers can use our equipment with peace of mind. We will enhance infrastructure that maximizes
the performance of equipment, and through the reuse and recycling of products and through high-value-added
maintenance services, we will support the stable operation of equipment for all generation utilized in a variety of
applications. This business is critical for TEL’s medium- to long-term growth, and I am confident it can also be of
benefit to society by reducing environmental impact.

With the dawning era of the Internet of Things (IoT), demand for semiconductors is becoming progressively
polarized. Amid advances to miniaturize semiconductors and to further increase their density for MPU2 andDRAM,3 demand is also increasing for general-purpose semiconductors in a wide range of fields, such as
medicine, finance, transportation and manufacturing. Extending the life cycle of products is another challenge,
evidenced by demand for the long-term stable operation of semiconductors for automobiles and industry.
In view of these trends, TEL has developed an organizational structure focused on the aftermarket. We
have developed systems to better understand the needs of our customers, and to share them internally as
feedback so they can be reflected in product development.
Based on these systems, a major pillar of our business expansion has been the supply of equipment,
centering on 200 mm equipment. Leveraging our strength in having delivered more than 66,000
machines as one of the largest suppliers in the industry, we procure equipment from end users or fromthe used equipment market and sell them as TEL-certified used equipment. We are also putting a great
deal of effort into remanufactured equipment. Remanufactured equipment refers to equipment build bytaking the TEL used equipment we have procured and disassembling them into modules, modifying thoseparts that are still usable, and adding new parts where they are needed. Doing so enables us to provide
equipment according to customer demand.

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New parts

Equipment

TOKYO ELECTRON SUSTAINABILITY REPORT 2018

2 MPU (Microprocessing unit):
Microprocessors or semiconductor
chips that mainly provide thecomputing power for computers

Kiyoshi Sunohara
Senior Vice President and General Manager,
Field Solutions Business Division

3 DRAM (Dynamic random accessmemory): A type of semiconductor
storage element for computers, etc.

TOKYO ELECTRON SUSTAINABILITY REPORT 201824

Responsiveness to customers
Ensuring safety for customers

Improvement of customer satisfaction

Information provisionTokyo Electron (TEL) is committed to providing relevant safety information to customers to enable thesafe handling of products.
All products purchased by customers come with a standard TEL Safety and Environmental Guidelines
manual. This manual describes the potential risks associated with the use of our products together withthe methods for averting those risks, divided into such categories as chemical, electrical, mechanical andergonomic. It also describes safety measures applied to products and recommended methods for productdisposal. The manual has been translated into 10 languages to ensure that our customers around the world
can accurately understand the information and use our products safely. To assist customers in using TEL
equipment safely, we also provide a manual detailing the procedures for avoiding risks associated with therelevant equipment and for ensuring its correct operation and maintenance.
Close attention must also be paid to safety when delivering TEL products that involve the use ofhazardous chemicals or high voltage electricity. Particularly when delivering our products to a customer’s
new production line, we check their facilities, equipment and workplace safety standards beforehand
according to our internal rules to ensure a safe environment.

Customer Satisfaction Survey* 10 languages: Japanese, English,
German, French, Italian, Dutch,
Russian, Korean, Traditional Chinese,and Simplified ChineseTokyo Electron (TEL) conducts a Customer Satisfaction Survey (TEL CS Survey) every year, with the goal of
making continual improvements based on customer feedback. The survey started in 2003, aimed at justa limited number of departments. It was expanded to include all semiconductor production equipment
departments in 2014, and later the FPD production equipment division and overseas subsidiaries in 2016,
making it into a company-wide undertaking.
Once a year, customers are sent a questionnaire with specific questions designed to lead to practicalimprovements. Results from the survey are given as feedback to customers. In addition, results analyzed
by product, account (customer) and function (software, development, etc.) are shared with the relevant
divisions for action to be taken, thus leading to interdivisional improvement activities. Improvements
are also constantly made to all aspects of the actual survey method, from the questions asked, to theanalytical methods and overall operation of the survey activities.
In the customer satisfaction survey for fiscal year 2018, responses were received from approximately
1,300 individual customers which is 62.1% of all customers. We received 3 points* or higher on 64.9% of allquestions asked. Based on this valuable feedback and analytical results, our entire company will work todrive improvements initiated from the customer perspective.

* On a 4-point scale, 3 points or
higher represents “Very Satisfied orSatisfied”

Training
TEL provides its customers with training on equipment operation and maintenance procedures toensure they are able to handle TEL products correctly and safely. Centered around our manufacturing
sites, we have established training centers worldwide, with approximately 80 instructors conducting
practical training courses using actual TEL equipment. So that the training we provide is always of thehighest quality, we use our own certification system for instructors to ensure that training is delivered bypersonnel recognized as having the necessary skills. In addition to practical training, we also provide webbased training and on-site training at customer sites. In fiscal year 2018, we provided customers with a
total of approximately 9,500 days’ worth of training.
At the end of a training course, TEL also surveys participants to collect and analyze their feedback on our
training programs and equipment. Based on the survey results, we implement improvements in an effort
to develop an enriched training environment.

Percentage of responses that indicated customer satisfaction

64.9%
CS Survey activity
preparation

Plan

Do

ActionCheck

Conduct survey ofcustomers

Feedback to customers

Analyze survey results

Implement improvement
activities in each division

Report and investigate
improvement plan

Confirm progress ofimprovement activities

Improvement example
Results of the Customer Satisfaction Survey brought to light a certain issue that would not haveordinarily been identified. In response, the relevant departments and overseas subsidiary took the leadin implementing improvements, backed by the cooperation of all TEL departments. We responded toinquiries with greater accuracy and speed, we delivered products and got it up and running more quickly,
and we revised our allocation of field engineers. These efforts were reflected in the improved evaluation
given by the customer the following year. A request received from another customer suggested thatthey wanted more enhanced support for software operated across multiple pieces of equipment. We
implemented a variety of measures, and consequently, the evaluation score received from that customer
also improved.

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