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A better world
through innovation
Semiconductors are leading the charge towards a data-driven
society, with Tokyo Electron (TELTM) a key player in the evolution ofsemiconductor process technology.

Toshiki Kawai
President & CEO, Tokyo Electron Limited

Toshiki Kawai
President & CEO, Tokyo Electron Limited

The past two years have ushered in signiﬁcant changes in the world
as we know it—many of which have been for the better. Businesses
and society as a whole have become more digitally connected, thanks
to increased adoption and usage of information and communication
technology (ICT). In addition, rapidly evolving technologies suchas artiﬁcial intelligence, the Internet of Things (IoT), big data, 5G
telecommunications networks, and even post-5G technology aremaking our ICT tools faster, smarter, safer and more reliable.
“The recent crisis has sped up digital transformation andtechnologies by several years, accelerating our evolution to a datacentric digital society”, says Mr Toshiki Kawai, president and CEOof Tokyo Electron (TEL). With revenues of more than US$11 billion
since FY 18, TEL is the leading global manufacturer of equipment
and services for the semiconductor and ﬂat-panel display industries.
A BRIGHT FUTURE AWAITS
Not only do semiconductors feature within various devices athome and for leisure, they also empower businesses of all types,
leading to the creation of entirely new digitised industries—fromautomated vehicles, to smart agriculture, telehealth, and smart
cities. The semiconductor market will more than double in value
from over US$440 billion in 2020 to about US$1 trillion by 2030.
Semiconductors are at the heart of this ecosystem.
Yet industry-wide growth must not be at the expense of theenvironment or people’s well-being. In tackling environmental issues,
TEL considers innovation in semiconductor technology to be themost important factor. “As a company that provides equipment tosemiconductor manufacturers, TEL is committed to ensuring theindustry grows sustainably, balancing ‘digital’ and ‘green’,” explains
Mr Kawai. TEL has committed to a 30% reduction in CO2 emissions

per wafer made from TEL products by 2030 based on 2018 levels.
The company also plans to reduce CO2 emissions from its plants
and oﬃces by 70% within the same period by sourcing 100% of its
power needs from renewable energy.
To meet the environmental challenges that reside within its
supply chains, TEL established E-COMPASS (Environmental CoCreation by Material, Process and Subcomponent Solutions). The
initiative aligns TEL products and operations more closely with its
environmental mandates, strengthening the company’s ties withbusiness partners, and solidifying its industry leadership.
“We will utilise every management resource at our disposal todrive the major trends of digitalisation and greening of society, andactively endeavour to preserve the global environment through thesupply chain,” says Mr Kawai.
While technological advances will help drive these goals, theseachievements will ultimately be realised by TEL employees. Thecompany believes that corporate growth is ﬁrst and foremost about
people, and that employees are the source of both corporate value
creation and economic growth.
FROM STRENGTH TO STRENGTH
Since TEL’s founding in 1963, the company continues to growfrom strength to strength. TEL is the only company in the worldthat manufactures the four sequential key types of processing
equipment indispensable for the patterning of semiconductors—
these include deposition, coater/developer, etch, and cleaning. TEL
estimates that its products are either number-one or number-two
in terms of market share, and it owns 100% of the inline coater/developer for extreme ultraviolet lithography market worldwide.
TEL holds the world’s largest installed base of about 78,000 units,
and prides itself on its low turnover, which ensures business
continuity and safeguards technical information. “Virtually every
semiconductor in the world passes through TEL-made equipment,”
says Mr Kawai.
TEL will invest more than ¥400 billion (US$3.5 billion) in researchand development (R&D) over three years from FY 2020. The company
maintains a strong pipeline of next-generation products, enabling TEL
to pursue proﬁts from high value-added equipment that customers
will need in the future. The company has also targeted the ambitious
ﬁnancial model of achieving ¥2 trillion (US$18 billion) in sales, and an
operating margin and return on equity of 30% or more by FY 2024—
targets that are likely within reach.
The company’s corporate philosophyof “contributing to the development ofa dream-inspiring society through ourleading-edge technologies and reliableservices and support” reﬂects the pledge
TEL has made to continuously invest in
www.tel.com
R&D. “Together with our employees, we
can grow into an even more dynamiccompany,” says Mr Kawai.