Business Update

Hiroshi Takenaka, President & CEO
January 31, 2011

1CORP IR / January 31, 2011

2011 Business Environment▶SPE capex
Fall in DRAM price has led to some adjustment of capex plans, butcapex for NAND, MPU and Foundry performing well.
2011 WFE market expected to be up by around 10%.

▶FPD capex
Large panel investment in adjustment phase but investment for tablet
PCs and smartphones continues to grow.
Overall capex expected to be about same level as 2010.

▶PV capex
While single-crystal silicon and compound (Cd-Te) currently performing
well, good future for thin-film silicon prospected, based on continued
improvements in conversion efficiency.
2WFE: Wafer Fab Equipment
CORP IR / January 31, 2011

250

7-9/
00
10-1
2/ 00
1-3/ 01
4-6/ 01
7-9/ 01
10-1
2/ 01
1-3/ 02
4-6/ 02
7-9/ 02
10-1
2/ 02
1-3/ 03
4-6/ 03
7-9/ 03
10-1
2/ 03
1-3/ 04
4-6/ 04
7-9/ 04
10-1
2/ 04
1-3/ 05
4-6/ 05
7-9/ 05
10-1
2/ 05
1-3/ 06
4-6/ 06
7-9/ 0610-12/ 06
1-3/ 074-6/ 0
77-9/
07
10-1
2/ 07
1-3/ 084-6/ 087-9/
08
10-12/ 08
1-3/ 094-6/ 097-9/ 0910-1
2/ 09
1-3/ 104-6/ 107-9/ 1
0
10-1
2/ 10

Quarterly SPE+FPD/PVE Orders
Oct-Dec/2010(Billions of Yen)FPD/PVE order
SPE orderSPE
128.6 (-14%)
FPD/PVE 15.2 （-32%)
Total:143.8 (-17%)( ): change from Jul-Sep/2010% is calculated using full amounts

200

1501005003

CORP IR / January 31, 2011

SPE Orders by Application(Equipment only)
100%

37

740%

8

12626

37

16

32

15

4617821

33

15

4658

42
55

39

45

39
24

32

24

15

12224935

3123
28

22
24

10192926

1151

22

23
44

9852

2252

0
3

151230

33

41

36

35

22

16

1927

21

55
20%

18

4

1160%

17

16
39
27

30

10/4680%

34

28

25

09/10-12

22

24

18
15

18

23

23

10/10-12

10/79

10/1309/79

09
/46

09
/13

08
/10-1208/79

08
/46

07
/10-1208/1307/79

07
/46

06
/10-1207/1306
/79

06
/46

06
/1305
/10-120%

Logic & Others (MPU, System LSI, Others)
Logic Foundry
FlashDRAM(TEL estimate)
CORP IR / January 31, 20114

Next FY: Key Issues▶ Expand market share of core SPE products▶ Strengthen cutting-edge technology developmentwith key customers▶ Pursue cost reductions▶ Restructure FPD business▶ Strengthen 3DI, OLED, and PV businesses

5
CORP IR / January 31, 2011 Disclaimer regarding forward-looking statement
Forecast of TEL’s performance and future prospects and other sort of information
published are made based on information available at the time of publication.
Actual performance and results may differ significantly from the forecast
described here due to changes in various external and internal factors, including
the economic situation, semiconductor/FPD/PV market conditions, intensificationof sales competition, safety and product quality management, and intellectual
property-related risks.
 Processing of numbers
For the amount listed, because fractions are rounded down, there may be thecases where the total for certain account titles does not correspond to the sum of
the respective figures for account titles. Percentages are calculated using fullamounts, before rounding.
 Exchange Risk
In principle, export sales of Tokyo Electron’s mainstay semiconductor andFPD/PV cell production equipment are denominated in yen. While somesettlements are denominated in dollars, exchange risk is hedged as forward
exchange contracts are made individually at the time of booking. Accordingly, theeffect of exchange rates on profits is negligible.
FPD/PV: Flat panel display/Photovoltaic

6CORP IR / January 31, 2011

7CORP IR / January 31, 2011