TOKYO ELECTRON LIMITEDANNUAL REPORT 06

TOKYO ELECTRON AT A GLANCE

Summary of Business
Semiconductor Production Equipment

Net Sales
Effective from fiscal 2005, the Company
made certain changes in accounting policies
as discussed in the notes to consolidated
financial statements.

72.3%(Millions of yen)
700,000

673,686

FPD Production Equipment

635,710600,000

12.0%
500,000

400,000

486,883

Tokyo Electron supplies flat panel display (FPD) production equipment that is used tomanufacture displays for PCs, LCD TVs and other electronic devices. This equipment is supplied to LCD panel manufacturers concentrated in Japan and elsewherein Asia. With its outstanding products and service support, Tokyo Electron is able torespond to customers’ pursuit of high quality and lower costs.
Fiscal 2006 Overview
Sales in this division were ¥81.2 billion, an 8.2% year-on-year increase.
Due to the rapid uptake of large-screen LCD TVs by ordinary households, LCD
panel manufacturers ramped up capital investment to boost production capacity.
Sales to Taiwan were particularly strong in this environment. By generation, sixthgeneration equipment contributed significantly to sales, while sales of models forseventh-generation glass substrates rose sharply.

Computer Network

457,191

300,000

2.6%

200,000

75,038100,000

Tokyo Electron supplies a wide range of semiconductor production equipment (SPE)and provides outstanding service support to the world’s manufacturers of semiconductor devices. Tokyo Electron’s products and technologies support high productivity and diverse customer needs and are thus indispensable in the manufacture ofincreasingly sophisticated semiconductors.
Fiscal 2006 Overview
Division net sales were ¥486.9 billion, a 6.5% year-on-year increase.
The past fiscal year saw strong demand particularly for semiconductor memories
on the back of surging demand for portable music players and other digital consumer electronics, in addition to PCs and mobile phones. Reflecting this demand,
semiconductor manufacturers invested heavily in increasing production capacity. Inturn, this generated brisk inquiries for the Company’s products.

81,176

15,966

17,497

86,24986,881

2005

2006

0Tokyo Electron delivers business solutions for the broadband era with a wide
assortment of superior network-related and other products that cater to the needs ofthe time. Backed by a worldwide marketing organization that enables the Company
to stay abreast of the latest technological developments around the globe, Tokyo
Electron provides integrated solutions from product introduction to support.
Fiscal 2006 Overview
Division sales were ¥17.5 billion, an increase of 9.6% compared to the previous
fiscal year.
Among SAN (Storage Area Network)-related products, sales were strong of fibre
channel fabric switches and other products that form the platform technologies for
network construction. With respect to network-related products, business wasstrong for products that create highly secure websites.

Electronic Components

12.9%

In this segment, Tokyo Electron Device Limited (TED) is developing a new businessparadigm consisting of two functions. One is as a distributor of a wide array ofsophisticated electronic components from around the world. The other is a “development business,” whereby TED designs and develops components on contract
according to customer needs as well as develops its own products.
Fiscal 2006 Overview
Sales in this division were ¥86.9 billion, a 0.7% year-on-year increase.
In semiconductor products, which account for approximately 90% of sales in thissegment, sales of products for factory automation and for cell phone base stations werefirm on the back of higher capital investments. Furthermore, sales of products usedin flat panel TVs and car navigation systems were solid as consumer spending grew.

Besides the aforementioned businesses, theCompany recorded sales in the Others
business of ¥1,249 million in fiscal 2006,
compared with ¥1,266 million in fiscal 2005.

4

TOKYO ELECTRON LIMITEDANNUAL REPORT 06

Main Products

Sales by Region (Millions of yen)

• Coater/Developer• Spin-on Dielectric Coater• Plasma Etch System31,13169,186

108,314

Dielectric Etch System, Silicon Etch System
110,646• Thermal Processing System• Single Wafer Deposition System
CVD System, Plasma Processing System
Plasma Etch System
TeliusTM• Surface Preparation System
Auto Wet Station, Single Wafer Cleaning
System, Pre-clean System, Scrubber System• Wafer Prober• Imported Products

Coater/Developer
CLEAN TRACK™ LITHIUS™

66,94871,05245,04531,12762,72593,272

112,455

142,173

2005

2006

• FPD Coater/Developer• FPD Plasma Etch/Ash System■ China & Others■ Taiwan■ Korea■ Europe■ North America■ Japan2,162
8,977
40,36730,845FPD Plasma Etch/Ash System
ImpressioTM

14,152

16,61821,06422,0292005

2006■ China & Others■ Taiwan■ Korea■ Japan• Business Network & Security Solutions• Storage Area Network (SAN) Solutions• Middleware Solutions• Aerospace Products

15,966F5 Networks, Inc.
BIG-IP Local Traffic Manager• Semiconductor Products• Board Computer Products• Software• Other Electronic Components

17,497

2005

2006

4,311

7,298

81,93879,583Xilinx, Inc.

2005

52006

■ Japan■ Overseas■ Japan