Tokyo Electron  Annual Report 2011

FeatureAiming TO BE Global No. 1:
The Challenge of the New Miyagi Plant
Tokyo Electron has invested ¥25 billion in the constructionof a plant in Taiwa, a town close to Sendai City in Miyagi
Prefecture, that can conduct all the processes for plasmaetch systems from development to mass production. Etch
systems are a core product for the Company and also for theindustry. The Great East Japan Earthquake delayed construction, but the buildings for the R&D and administrative functions will become operational in July, and the building forthe production line will start operations in November.
Hirofumi Kitayama
Representative Director
Executive Vice President
General Manager, Manufacturing Division (Quality)
President, Tokyo Electron Miyagi Limited

The Goal of the Plant is to Become No. 1 in the WorldFirst, please tell us why you decided to build thisnew plant.

quality and manufacturing processes at the design and develop-

Simply stated, it is to “become the world’s top semiconductortion method will allow us to reduce manufacturing time andproduction equipment supplier.” More precisely, the major goal isintroduce more flexibility into production. In order to become theto enhance Tokyo Electron’s core technological strength in orderworld No.1, we will need to hire superior engineers. Miyagi is an

to enable the Company to continue to provide high-value, high-ideal location from the point of view of recruiting people. In terms

quality products to our customers. Since the new plant will con-of R&D, we are also thinking about the potential for various types

solidate the processes for etch systems from development to massof industry-academia partnerships, such as collaborations andproduction, it will enable us to thoroughly eliminate inefficiency inpersonnel exchanges with colleges of technology and universities

terms of time, communication, and costs and thereby reducein the Tohoku region, including Tohoku University. For Tokyo

product development time. We will also be able to incorporate­Electron, which can be described as a technology company par

ment phase, and achieve increases in productivity.
From the perspective of manufacturing, creating a new produc-excellence, this will have enormous benefits.

Plasma etch system, Tactras™ – Strong
global reputation based on exceptional
productivity and high reliability.

Are you making this huge investment into the construction of this new plant because you project
there will be sufficient growth in the etch system
market to justify it?
The current scale of this market is approximately U.S.$5 billion.
Amid the ongoing advancement of semiconductor scaling10Annual Report 2011

Tokyo Electrontechnology, the etch system market, which is very attractive in thea doubling of our sales within several years as a result. This is anwafer fab equipment industry, has substantial growth potential.

achievable goal if we enhance our efficiency, and continue toAt the same time, we must continue to supply top-quality

supply our customers in a timely manner with products based on

products to our customers in this attractive market. We anticipate

high-value technology.

Unwavering Conviction in Maintaining Production in JapanAt a time when many Japanese companies are relocating their production bases abroad, why do you
remain committed to keeping production in Japan?

Is it true that the new plant is also very advanced
in terms of being environmentally friendly?
We are committed to actively working on environmental issues

In order to win in a market that is characterized by keen competi-at the new plant. One of the environmental commitments wetion through technological innovation, what is most important ismade in May 2008 was “to reduce the impact of our businessto achieve differentiation in product development. To this end, weand transportation activities on the environment by 50%, byneed to differentiate ourselves through our technology and put

2015, compared to the 2007 levels.” In order to live up to that

products on the market more swiftly than before. In particular,pledge, we will adopt a 1MW solar power generation system

we must be able to launch development projects early on, andand use LED lighting where possible. In addition, we will makesubsequently achieve commercialization rapidly. Further, we mustemissions from the new plant as clean as possible by recycling

start to consider quality and costs right from the development

nitrogen and by further cutting the amount of greenhouse gas

phase. We need to fully refine our core technologies, taking

emissions in the product development and evaluation processes.

advantage of the insistence on a level of quality that Japan canRegarding the transportation of materials, the idea is to consoli-provide. With these factors in mind, I believe our optimal choice isdate, to the fullest extent possible, the handling of materials by

to carry out production in Japan.

building relay depots that will work as hubs, working in coopera-

With regard to production, by fully implementing visualization

tion with our suppliers around the country. We are consideringand the elimination of inefficiency, and by establishing quality

how to restructure the supply chain in this way, taking advan-

assurance in our own processes (that is, by ensuring that notage of the opportunity of the establishment of the new plant.

defective products move on to the next process), we can reduce
costs and maximize profits. In an environment where manufacturing is shifting to Asia, we must achieve success in meeting Tokyo
Electron’s big challenge to “win in Asia.”Tokyo Electron Miyagi’s new manufacturing base forplasma etch systems. Targets further strengthening ofoperations through unification of R&D and manufacturingfunctions. As part of the Company’s environmental
commitments, a solar power generation system is to beinstalled on the roof of the facility.

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