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Imagining a
new digital reality

Toshiki Kawai
President and CEO
Tokyo Electron Limited

Driven by semiconductor innovation, Tokyo Electron isstriving for big data and decarbonisation

Amid current geopolitical uncertainties, what is certain is
the growing importance of semiconductors. Those not so
distant lockdowns led to a surge in demand for gadgets andentertainment electronics. But according to Tokyo Electron(TEL), the world’s third largest semiconductor production
equipment manufacturer, the global market has diversified
beyond these. Mr Toshiki Kawai, president and CEO of TEL, is
optimistic about the growth potential for the semiconductor
market. He says semiconductor innovation can be used to not
only solve social problems, but also help establish a highperforming, more efficient and carbon-neutral society.
THE FUTURE IS BIG DATA
According to TechInsights Manufacturing Analysis Inc. (VLSI)
data, the market for semiconductor production equipment
has grown by 2.7 times since 2014. The global data traffic isalso growing at an explosive speed. For Mr Kawai, the futureis big data, which he says will eventually migrate to the cloudand metaverse. “We should not be satisfied with the growthso far. The era of ‘big data’, driven by semiconductors, has justbegun. People are talking about ‘big data’ but I feel like we arestill at a small data stage”, he says.
In order to facilitate this massive amount of data traffic,
TEL says the key is in large capacity, high speed, highly reliable
and lower power consumption semiconductors that alsoachieve broader sustainability and decarbonisation goals.
TEL has also introduced a new supply chain initiative called
E-COMPASS (Environmental Co-Creation by Material, Processand Subcomponent Solutions), which aims to further advancetechnological innovation beyond industry expectations
by reducing the environmental impact of semiconductor
manufacturing throughout the supply chain.
TEL is galvanising the concept of Creating Shared
Value (CSV) to contribute to the technological innovationof semiconductors, along with reducing CO2 emissions
by introducing renewable energy processes at all of TEL’s
manufacturing sites and offices; striving to reduce theenvironmental impact of the equipment and setting the goal
to be net zero carbon neutral by 2050.

INSPIRING EMPLOYEES
Despite significant global supply chain disruptions, TEL has
surpassed market forecasts, with an operating income inFY 2022 almost 7 times of FY 2015 of around ¥600 billion.
Mr Kawai says TEL aims to achieve an operating income ofmore than ¥1 trillion by FY 2027.
Fierce competition for technological breakthroughs is also
elevating the importance of securing talented professionals.
Mr Kawai attributes the company’s technological strength to theflexibility of its employees in being able to respond to dramaticchanges in the business environment. For instance, TEL focuseson motivation-oriented management and competitive rewards
to ensure technological development. “Our corporate growth isenabled by people, and our employees both create and embody
the company values,” Mr Kawai explains.
PLANNING FOR A DIGITAL ERA
TEL has set the bar high, aiming to earn more than ¥3 trillion
in net sales by FY 2027. Mr Kawai says semiconductors arecentral to supporting digital infrastructure such as the Internetof Things (IoT), AI, cloud computing, as well as 5G and post-5G
high-speed communications. In the next five years, TEL plans
to increase R&D investments by 1.6 fold to more than ¥1 trillion.
Mr Kawai says that in response to semiconductor innovations
that support smart houses, smart cities, smart factories, smart
healthcare and more, their main objective is to enhance existingproducts, as well as bring to life technology that is yet to exist.
Under TEL’s new vision set in 2022: “A company filled withdreams and vitality that contributes to technological innovationin semiconductors”, Mr Kawai is certain that their drive to standout in innovation will elevate the role of semiconductors in the
coming digital era and contributeto a society that will dream big.

www.tel.com