Reinforcing
responsivenessto customers

Medium-term goal

Become an irreplaceable strategic partner
Priority themes

Accurate graspof customer
needs

Solutions that create
value for customers

Industry,
innovation andinfrastructure

Responsible
consumption andproduction

Relevant SDGs

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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Systems for grasping customer needs
System development
In 2016, TEL revised its organization structure to align with expansion in the global market by adding acustomer (account) overlay to the structure, previously organized primarily by product-based business
units. With collaboration between people focused on customer needs and people who are specialists in
product-specific technologies, we aim to provide more global, high-value-added services.

Representative Director, President & CEO
Corporate Senior Staff (CSS)
Global strategy personnel

Global Field
Account management

Business Unit

Development & Production

CTSPS BU

Development & Production 1st Division

ES BU

Development & Production 2nd Division

TFF BUATS BU

Regional customer
management

Development & Production 3rd Division

FS BU

Development & Production 4th Division

FPD BUTechnology Strategy Division

Three-way operation

Corporate Administration Division

Sharing information and best practices
TEL conducts company-wide knowledge sharing to enhance customer service. Knowledge management
promotes internal company sharing of tacit knowledge previously held by individuals. It encourages
innovation and improves overall productivity. By connecting different business units and overseas sitesthat might have weak knowledge-sharing capabilities, we are working to implement best practices
across the entire company to deliver high-quality services to our customers. In 2016, leaders fromacross the world collaborated as a Global Service Committee. The committee has started to develop
global standards for working time management, skills management, and education methods to improve
service levels and make the most of our approximately 3,000 service employees around the world.
Finally, we are also working to improve the quality of our business operations and sales activities by
sharing sales-related best practices and information company-wide. These sales-related best practices
include how to build highly precise order prediction systems and how to enhance the strategic thinkingof our sales professionals.

Strengthening human resources
TEL’s Global Field Division was established in 2016 and is working alongside other divisions to develop
an education system and education environment for the field engineers around the world. In addition
to learning mechanics, electronics, software, and other basic technologies used by our equipment,
field engineers develop a service mindset to see things from the customer’s point of view. This focus
supports them in further enhancing their customer support. With a comprehensive range of e-learningmaterials as well, we are creating an environment that delivers high quality training to all corners of theearth even when our equipment and other machinery is not available.

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Reinforcing responsiveness to customers

Solutions that create value for customers

Integrated solutions
TEL has a diverse range of products designed to resolve in-depth issues of leading-edge technology. As
one of the few multi-product semiconductor equipment suppliers in the world, we must continuallyprovide solutions optimized to the customer’s entire manufacturing process. These days, semiconductor
device manufacturers are facing on manufacturing devices with high productivity even down to fivenanometer generation. With our diverse range of products, we support cutting-edge development
and manufacturing operations through comprehensive and integrated solution proposals. We achieve
this by collaborating with specialists in individual equipment as well as managers who oversee thecustomer’s entire production process from a technology perspective.

Proposing solutions that overcome barriers in the manufacturing process
Recently, it has become necessary for semiconductor device manufacturers to have ultra-fineprocessing capabilities on the scale of sub ten nanometers. In order to form these ultra-fine patterns,
it is essential to have a combination of equipment carrying out various processes, together with
optimization of the overall process. One example is forming high aspect ratio contact holes for theleading-edge semiconductors. In addition to the advanced etching processes for trenches, holes, andpatternings, it is necessary to consider the integrated processes, taking into account mask structuresand mask materials. Our strength lies in our wide range of products, which enables us to provide
integrated solutions for multiple processes. Through a merger of technologies in our diverse range ofequipment, we are partnering with our customers to support cutting-edge development strategies.

Field engineers implementing workplace solutions
TEL field engineers work closely with customers’ production sites and are able to proactively propose
solutions. One of those solutions currently being implemented is predictive maintenance for coater/developer systems.* With almost 100 modules in the driver unit, lost productivity from failures and parts
replacement is a problem. This solution continually evaluates the condition of the driver unit, checking
for signs of failures or abnormalities, in order to maximize uptime of customer equipment. In addition,
our field engineers strive to deliver services from the customer’s point of view, using their familiarity
with the customer’s equipment usage to analyze alarm logs and other equipment information to offer
solutions that improve the condition of the equipment and achieve high-quality, high-availability
operation.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

* Coater/developer systems: Usedin the semiconductor production
process, these systems employ aphotolithographic process, whichuses the same technology as
photography, to apply and developphotoresistBusiness opportunities driven by IoT
In the era of the Internet of Things, where almost everything is connected to networks, the importanceof semiconductors is increasing. With the use of semiconductors in a wide range of fields, frommedicine to education, finance, automobiles, aviation, space, safety, and the environment, requirements
for semiconductor manufacturing equipment are also becoming more diverse. So far, demand has
centered on DRAM1 and MPUs,2 the “brains” of systems used in computers and mobile devices. With
subsequent miniaturization and high integration, semiconductor manufacturing equipment has evolved
as well. The diversification of semiconductors over recent years has led to increasing demand for highperformance semiconductors that handle big data for various applications, including servers, automateddriving, and artificial intelligence. Demand is also increasing for general-purpose semiconductors inapplications such as sensors, power devices, and discrete and analog semiconductors. At the sametime, there is increasing customer demand for equipment that employs cutting-edge technologies aswell as equipment that features standard technologies. Having delivered more than 60,000 machines
as one of the largest suppliers in the industry, we are also providing customers with TEL Certified
Used Equipment, including previous generation 300 mm or 200 mm equipment. We provide themodifications, upgrades, service, and parts needed to continue using our existing equipment. Altogether,
we are working to meet the various needs of our customers.

1 Dynamic random access memory(DRAM): A type of semiconductor
storage element for computers, etc.
2 Microprocessing unit (MPU):
Microprocessors or semiconductor
chips that mainly provide thecomputing power for computers

Data centerAIMemory

ProcessorSensor

TOKYO ELECTRON SUSTAINABILITY REPORT 201724

Reinforcing responsiveness to customers

Ensuring safety for customers
Information provision
TEL provides relevant safety information to customers to enable safe handling of products that require
hazardous chemicals or high voltage electricity.
All of our products come with a standard TEL Safety and Environmental Guidelines manual. Withconsistently organized information, this manual describes the potential risks associated with the useof our products by category, such as chemical, electrical, mechanical, and ergonomic, together withthe methods for averting those risks. The manual also describes safety measures applied to products
and recommended methods for product disposal. The manual is offered in 10 languages* to ensure thecontent is correctly understood by our customers around the world. Each product also comes with amanual detailing the procedures for avoiding product-specific risks and securing safe operation andmaintenance, thus ensuring safe use of the equipment.
Close attention must also be paid to safety when delivering our products to new customer
production lines. We check the facilities, equipment, and workplace safety standards beforehand
according to our internal rules to ensure a safe working environment prior to delivery.

Training
TEL provides its customers with training on equipment operation and maintenance procedures toensure they are able to handle TEL products safely. To meet the needs of customers around the world,
we have established training centers at various TEL sites, with approximately 80 instructors conducting
training courses including practical skills needed to work on TEL equipment. We also provide web-basedtraining and on-site training at customer sites. In fiscal 2017, we provided approximately 9,500 days of
training to our customers in total.
In addition, we have introduced a certification system for our instructors in order to assure we
provide high quality training. We survey participants after they complete a training course to measure
their satisfaction with the training. We then use their feedback on the training programs and equipmentused in order to continually improve our training system.

Training centers

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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

* 10 languages: Japanese, English,
German, French, Italian, Dutch,Russian, Korean, Traditional Chinese,and Simplified ChineseCustomer Satisfaction Survey
TEL conducts a Customer Satisfaction Survey (TEL CS Survey) every year, with the goal of making
continual improvements based on customer feedback.
The survey started in 2003 with a limited number of departments. Since then, we have madenumerous improvements to the questions, survey method, analysis, feedback to customers about
targeted improvements, and overall management of the program. The survey grew to include all
semiconductor production equipment departments in 2014. The FPD production equipment divisionand overseas subsidiaries were added in 2016 to make the survey a key organization-wide initiative.
The questions are designed to allow multi-faceted analyses of customer opinions, so that feedback candirectly lead to practical improvements in the sales, development and production, and service divisions.
To ensure the survey results lead to improved customer satisfaction, in 2016, we began analyzing
the results by account and function (software, development, etc.) in addition to analyzing by product.
Results of the analysis are used by dedicated in-house personnel to respond to each specific case andto improve our services overall. Results of the function-based analysis were used to again identify
common issues related to each product. We also developed a mechanism for immediately sharing
feedback with related divisions, so that we can conduct further multi-faceted analyses and accelerate
our improvement activities.

Percentage of responses thatindicated customer satisfaction

67.6%

In the survey for fiscal 2017, which was conducted under this new system, approximately 1,300individual customers responded for a 61.6% response rate. On a 4-point scale, we received an average of3 points or higher (Very Satisfied or Satisfied) on 67.6% of the questions, compared to 62% of questions
last year. Through this customer satisfaction survey, we take corrective action based on the valuable
feedback received from our customers, analysis results, and issues requiring improvement. We makefull use of the survey to improve our services and product development, and we continually share theresults of the survey and our plans for improvement with our customers. Our entire company is working
to drive improvements through this customer satisfaction survey.

TEL CS Survey organization and workflow
Conduct surveyof customers

Global Field
Account management

Confirm
progress ofimprovement
activities

Business Unit
CTSPS BU

Analyze survey
results

ES BU

Development & Production 2nd Division

TFF BU
Regional customer
management

Development & Production 3rd Division

ATS BU
Implement
improvement
activities
in each division

FS BU
FPD BU

Development & Production
Development & Production 1st Division

Report andinvestigate
improvement
planDevelopment & Production 4th Division
Technology Strategy Division

Feedback tocustomers

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