TOKYO ELECTRON LIMITEDANNUAL REPORT 07

REVIEW OF OPERATIONS
Semiconductor Production Equipment
Fiscal 2007 Review
Division net sales were ¥642.6 billion, up 32.0% year on year.

Sales by Region

Japan

11

The past fiscal year saw significant interest in our products from semiconductor
manufacturers due to rising demand for memory devices for PCs, mobile phones and(%)

China & Others

27
Taiwan22

other digital consumer electronics. With expectations of higher demand for PCs dueto the launch of Microsoft’s new operating system, Windows Vista™, and for semi-1716NorthAmerica

7conductors to support increasingly sophisticated mobile devices and other applicaKorea

tions, semiconductor manufacturers increased capital expenditures, mainly for DRAMand NAND flash memory. This division sought to capitalize on these trends with thelaunch of a stream of new products. The result of these efforts was higher sales,

EuropeSemiconductor Production Equipment Sales(Billions of Yen)

800
642.6

600

manufacturers, particularly in Asia, sales of coater/developers, etch systems, ther-200

303.6

increase in sales. By model, Tokyo Electron saw sales growth of CLEAN TRACK™

361.0

400mal processing systems, CVD systems and cleaning systems recorded large

486.9

By equipment type, backed by strong capital investment by semiconductor memory

457.2

particularly of mainstay products.

LITHIUS™, a coater/developer compatible with next-generation design rule technolo0gies, new TELINDY™ thermal processing systems, EXPEDIUS™ automated wet stations, and Telius™, a plasma etch system equipped with an SCCM™ –JI etch chamber.

New Products Released in FY2007
Coater/Developer
CLEAN TRACK™ LITHIUS Pro™

Plasma Etch System

Thermal Processing System

Dielectric Etch
Tactras™ Vigus™

Thermal PECVDTELINDY™ IRad™

Single Wafer CVD
Trias™ LT Ti/TiN

Surface Preparation System

Auto Wet Station
EXPEDIUS™+

Wafer Prober
Precio™

2203

04050607■ Previous policies■ New policies
Notes: 1. Since fiscal 2005, sales of FPD
production equipment have beenshown separately from SPE Division
sales, in which they were previouslyincluded. In the above graph, SPE
sales for fiscal 2004 and prior years
exclude FPD production equipment
sales on a non-consolidated basis
for the convenience of readers.
(These figures are unaudited.)
2. Effective from fiscal 2005, theCompany made certain changes inaccounting polices as discussed in
the notes to consolidated financial
highlights.

ANNUAL REPORT 07

TOKYO ELECTRON LIMITEDFPD Production Equipment
Sales by Region

Fiscal 2007 Review
Sales in this division were ¥100.8 billion, up 24.1% year on year.

Japan

6

During the past year, LCD panel manufacturers increased investment to develop stateof-the-art display panels and ramp up production capacity in response to the rapid(%)

Others37
Taiwan41

uptake of LCD TVs by ordinary consumers, which is being driven by the shift to digital
broadcasting and high-definition (HDTV) broadcasts.

16

Responding to this operating environment, Tokyo Electron engaged in product
Korea

development and sales activities designed to stay abreast of market trends and cater tocustomer needs. In fiscal 2007, for example, the Company introduced Exceliner™, anFPD coater/developers. This new product is designed to process eighth-generation large

FPD Production Equipment Sales(Billions of Yen)120

this division reached a record high, with contribution of sales growth mainly in Japan.
Notes: 1. Since fiscal 2005, sales of FPD production equipment have been shown separately from SPE Division sales,in which they were previously included. In the right graph, FPD production equipment sales for fiscal 2004
and prior years are on a non-consolidated basis, while those from fiscal 2005 are on a consolidated basis.
2. Effective from fiscal 2005, the Company made certain changes in accounting polices as discussed in thenotes to consolidated financial highlights.

0304

81.2

75.0

60

As a result of prevailing market conditions and Tokyo Electron’s response, sales in64.8

sales eclipsed initial forecasts to reach a record high in this division.

9061.1system. As a result of prevailing market conditions and Tokyo Electron’s response,

100.8

glass substrates and follows the launch of Impressio™, an FPD plasma etch/ash

300050607■ Previous policies■ New policies

Electronic Components
Fiscal 2007 Overview
Sales in this division were ¥88.3 billion, 1.6% higher year on year.

Electronic Components Sales

In semiconductor products, the main line in this division, the Company reported firm

10086.2

86.9

88.3

60

84.280tions, as client companies increased capital expenditures. Sales of dedicated ICs for

77.4

sales of custom ICs for medical equipment and memory ICs for cell phone base sta-

(Billions of Yen)

04

05

06

07

use in multifunction printers were also higher. In software, sales of operating systems for
POS terminals were healthy, as were sales of other electronic components such as
switching power supplies, LCDs, and panel PCs for other industrial equipment.

4020003

Computer Network
Computer Network Sales(Billions of Yen)

Sales of network and storage equipment were strong, driven by buoyant capital investment by companies seeking to enhance corporate internal control and personal information security. Sales of IT-related software and maintenance services also grew.

19.2

17.5

16.0

15

18.4

20
17.2

Fiscal 2007 Overview
Division sales were ¥19.2 billion, an increase of 9.6% compared to theprevious fiscal year.

105This business has been handled by Tokyo Electron Device Limited, since October 2006.
0030405060723