Chapter 1

About Tokyo Electron

Corporate Philosophy

Management Policies

The Corporate Philosophy defines the purpose of

The Management Policies highlight the management values thatTokyo Electron’s existence and its mission in society.

Tokyo Electron regards as essential to achieving the objectives defined in

It represents TEL‘s basic way of thinking that forms the foundation for

its Corporate Philosophy. They express the logic that underscores

its corporate activities.

our eight general rules of management.

 Profit is Essential

We strive to contribute to the developmentof a dream-inspiring society throughour leading-edge technologies and reliable
service and support.

The TEL Group aims to contribute to thedevelopment of society and industry and to
the enhancement of corporate value while
continually pursuing profit.

 Growth Philosophy
We will tirelessly take on the challenges oftechnological innovation to achieve
continuous growth through businessexpansion and market creation.

 Employees
The TEL Group’s employees both create andfulfill company values, performing their workwith creativity, a sense of responsibility, and acommitment to teamwork.

 Safety, Health, and the Environment
The TEL Group gives the highest consideration
to the safety and health of every person
connected with our business activities as wellas to the global environment.

3

TOKYO ELECTRON Integrated Report 2021

 Scope of Business
The TEL Group leads markets by providing
high-quality products in leading-edge
technology fields with a focus on electronics.

 Quality and Service
The TEL Group strives to understand the trueneeds to achieve customer satisfaction andsecure customer trust while continuously
improving quality and service.

 Organizations
The TEL Group builds optimal organizations
that maximize corporate value in which all
employees can realize their full potential.

 Social Responsibility
Feeling a strong sense of corporate social
responsibility, we strive to gain the esteem ofsociety and to be a company where our
employees are proud to work.

TOKYO ELECTRON Integrated Report 2021

4

Chapter 1

About Tokyo Electron

CEO’s Message
Practice of the Corporate Philosophy:
Semiconductors and Displays
in a “Digital × Green” Society

Toshiki Kawai
Representative Director,
President & CEO

Toward Expansion ofMedium- to Long-term Profit andContinuous Corporate Value Enhancement
I would like to express my sincere gratitude to all
stakeholders for your continued support and patronage.
Tokyo Electron was established in 1963 by a few
young people full of venture spirit. That spirit has been
passed down through the years, making it possible for us
to launch innovative equipment for semiconductor and
LCD panel manufacturing, areas characterized by rapid
technological change.
With the spread of IoT, AI and 5G today, the shift
toward a data-driven society is accelerating, and we

5TOKYO ELECTRON Integrated Report 2021

expect to see further expansion in business
opportunities against a backdrop that demands
unending technological innovation.
Amid such circumstances, we constantly remainaware of the “Purpose” of our existence in society, as
represented by our Corporate Philosophy: “We strive tocontribute to the development of a dream-inspiring
society through our leading-edge technologies andreliable service and support”. By leading the world in thecreation of high-value-added technologies, we strive toexpand profits in the medium to long term, andcontinuously enhance our corporate value.

The previous year 2020 saw the global spread of
COVID-19 and frequent natural disasters arising fromclimate change, including torrential rains in Japan andhurricanes and cold spells in North America. In addition,
there were geopolitical issues such as trade friction as
well as various human rights issues that occurredworldwide. It became a year carved in history as one that
had a major impact on society and the lives of people.
On the other hand, it was also a year when digitaltransformation (DX) made progress in our daily lives andall kinds of industries, and the importance ofsemiconductors, which are essential for information andcommunication technologies (ICT), became prominent.
As the shift toward a data-driven society accelerates
and efforts to solve global environmental problems
progress, “Digital × Green” has become a major trend
worldwide. Green refers to carbon neutrality, the goal of
decarbonization by suppressing CO2 emissions. (Fig. A)

Fig. A: Trend toward the Future

Therefore, the world is currently pushing firmly ahead
with implementing ICT and DX as well as taking action torealize a carbon-free society in order to build a strong
and resilient society in which economic activities do notstop under any circumstances.
Going forward, the digitalization of all kinds ofindustries will penetrate widely through society,including the evolution of new technologies such as
autonomous driving and smart fabs, smart agriculture,
smart medical care, and smart cities. Standing at theircore and supporting them are semiconductors.
Semiconductors were first used in computers andtelevision sets and then spread to mobile phones. They
are now no longer simply chips that power things but
have instead become an infrastructure for the whole ofsociety. It is only with semiconductors that thedigitalization of society becomes possible. The
technological demands on semiconductors, such aslarger capacity, higher speed, higher reliability, and lower
power consumption, are limitless.
Alongside the evolution of semiconductors are displaysthat form the interface between people and data.
Technological innovation continues to center on organic
light-emitting diodes (OLEDs), and application is expanding
beyond the concept of just being monitors. Technologicalinnovation will continue as long as efforts to makedisplays more beautiful and easier to use continue. (Fig. B)

Fig. B: Technological Demands on Semiconductors and Displays

Digital (ICT/DX) × Green (decarbonization)
Largercapacity

Higherdefinition
Thinner

Higherspeed

Semiconductors

Displays
Lighter

Higherreliability
Foldable
Lower
power
consumption

Lower
power
consumption

TOKYO ELECTRON Integrated Report 2021

6

Chapter 1

About Tokyo Electron

Reflecting on the past, the 1990s were called
computer-centric, with personal computers driving thesemiconductor market. We then entered themobile-centric 2000s, when smartphones drove themarket. Going forward, we will enter the age of DX,
where billions of “things” will be connected to theinternet and the big data generated by these things will
drive society. Global data traffic is expected to increase at
a compounded annual growth rate of 26%1.
The semiconductor market will expand greatly tosupport the explosive increase in data traffic. In thenearly 70 years since the invention of the transistor in
1947, the size of the global semiconductor market
reached approximately US$440 billion in 2020. It is
expected to reach US$1 trillion in 2030, more than twice
the size of the current market which has grown over the
past 70 years. In other words, it means a market that is
the same size or greater than the current one willdevelop in the next 10 years. (Fig. C)
The wafer fab equipment (WFE2) market that we are apart of is expected to have a market size of over US$90
billion in 20213. Looking toward the future, further growthis expected with the trends toward ICT, DX,decarbonization, electric vehicles, autonomous driving
and post-5G communication, and just as thesemiconductor market is expected to reach US$1 trillion,
the WFE market will also enter what we refer to as a new“Big Years” growth phase. (Fig. D)
To achieve further growth, we will ride the wave ofsuch technological innovation and create high-addedvalue technologies that the world has never seen andonly we can accomplish. Applying our expertise as an
equipment manufacturer developed through being an
industry leader and using all management resources,
including our employees who both create and fulfill
company values, we will contribute toward achieving thesocietal shared value of balancing “Digital × Green”. We
will strive to practice our Corporate Philosophy andachieve sustainable growth through these efforts andmeet the expectations of all stakeholders.
1 A compounded annual growth rate of 26%: Omdia’s projection for 2020-2030
2 WFE: Wafer Fab Equipment. The semiconductor production process is divided
into front-end production, in which circuits are formed on wafers and inspected,
and back-end production, in which wafers are cut into chips, assembled andinspected again. Wafer fab equipment refers to the production equipment usedin front-end production. Refer to Semiconductor Manufacturing Process andOur Main Products on p. 14.
3 Market size for 2021 is our estimate as of August 16, 2021.

Medium-term Management Plan

Our Material Issues

In May 2019, we revised our Medium-term Management
Plan upward. We developed a financial model that shows
the relationship between operating margin and return on
equity (ROE) that we should seek to achieve for eachanticipated sales scope. The model’s core targets are toachieve net sales of 2 trillion yen, an operating margin of
30% or more and an ROE of 30% or more by fiscal 2024.
It was designed to capture as much growth potential as
possible while steadily reinforcing our financial strengthand seeking to achieve world-class profits and ROE.
(Fig. E)
Through these profits, we will achieve shareholder
satisfaction and stable and enriching lives for our
employees in all business situations. We will also strive toinvest in technology development and secure
outstanding human resources for continuous growth. In
addition, we will seek financing when necessary underfavorable conditions by building a solid financial
foundation based on profits and fulfill our corporate
responsibility by paying proper taxes.
For fiscal 2022, we forecast net sales to be 1,850 billion
yen with a 27.5% operating margin*. We assess that weare making smooth progress toward our targets and willcontinue to work as one to achieve this financial model.

We define our material issues as we strive for medium- tolong-term profit expansion and continuous enhancementof corporate value. In addition to “Management
Foundation”, with areas such as safety, quality,
compliance, governance and risk management that
support our business activities at the foundational level,
our material issues consist of “Product Competitiveness”,“Customer Responsiveness” and “Higher Productivity”. As
a manufacturer, we always keep in mind the pursuit ofbecoming “Only One, Number One” through sales andsupport of equipment with world-leading performancethat fulfills extreme technological needs; that is to say,we offer the Best Products and Best Technical Service. We
will quickly grasp the changes in the trends of and needs
for leading-edge technologies to create next-generation
products with overwhelming added value andperformance required by customers in the future; be thesole strategic partner using our customer responsiveness;and further strengthen our earning power using higher
productivity based on continually improving operational
efficiency. (Fig. F)* Net sales and operating margin for fiscal 2022 are estimates as of August 16, 2021.

Fig. C: Outlook for the Semiconductor Market

Fig. D: WFE Market Trends

Fig. E: Financial Model of Medium-term Management Plan

The semiconductor market will grow to more than
twice its current size in the next 10 years
US$1 trillion(US$ trillion)

Ride the wave of technological innovation
toward a new growth phase

Aiming for world-class profits and ROE(US$ billion)

Fig. F: Our Material Issues

Create strong
next-generation products
Financial Model of Medium-term Management Plan (by Fiscal 2024)

100
1.0
80

0.8

60

0.6

US$440.4 billion

0.4

ICT, DX,
decarbonization,
electric vehicles,
autonomous
driving, post-5G

40

0.2

20

0.0

0

Net Sales¥

1.5 trillion¥

1.7 trillion¥

OperatingMargin26.5 %

28.0 %>30.0 %

ROE
2000

2010

2020

Source: 2000‒2020 (WSTS), 2021‒2030 (IBS, April 2021）

7

TOKYO ELECTRON Integrated Report 2021

2030

1990

2000

2010

2020

2030

2.0 trillion

Product
CompetitivenessBe the sole
strategic partner

Continually improve
operational efficiency

Customer
Responsiveness>30.0 %

HigherProductivity

Management
Foundation

Source: VLSI Research (1990‒2020)

TOKYO ELECTRON Integrated Report 2021

8

Chapter 1

About Tokyo Electron

Leveraging Expertise and Strengths

Sustainability Initiatives

Based on these aforementioned ideas, we will adopt
strategies that maximize the application of our expertise andstrengths, which are as follows: (1) being the only
manufacturer in the world with the series of four key processsystems required for semiconductor scaling; (2) having thenumber one or two product share for these systems; (3)specifically, our 100% share of coater/developers for EUV
lithography, which is essential for leading-edge scaling; and(4) delivering approximately 4,000 units annually and having
a cumulative number of equipment installations ofapproximately 76,000 units, the largest number in theindustry, through which sold equipment become new
business opportunities and build a business model for field
solutions that generate value. (Fig. G)
Under such circumstances, we plan to invest 165
billion yen for research and development in fiscal 2022,
the highest amount ever. When we revised theaforementioned Medium-term Management Plan, we
announced a research and development investment planof approximately 400 billion yen in the three years
starting from fiscal 2020. We are executing investments
according to this plan. Going forward, we will continue toproactively invest in growth using our solid financial
foundation based on profits.
Virtually every semiconductor or display in the world
passes through our systems. We will further grow ourstrengths and bring in growth opportunities to thefurthest extent possible.

Our sustainability initiatives are the practice of our
Corporate Philosophy itself. We will achieve sustainablegrowth and the enhancement of corporate value by
using our unique expertise as an equipment
manufacturer and contributing to the development ofindustry and society.
The Environment
Based on this approach, we are undertaking the buildingof a carbon-free society from three perspectives.
First, we will contribute toward higher performanceand lower power consumption for semiconductor
devices being used around the world. We will create thesocietal shared value of balancing “Digital × Green” bypromoting technological innovation together with ourcustomers.
Next is saving energy during the operation ofequipment. In December of last year, we revised our
Medium-term Environmental Goals for 2030,
announcing our goal of reducing per-wafer CO2
emissions by 30% compared to 2018.
The third perspective is the activities at our plants andoffices. We have set our goals to achieve a rate of 100%
renewable energy usage and a 70% reduction in total CO2
emissions compared to 2018 by 2030. (Fig. H)
We will fulfill our mission and responsibility towardachieving decarbonization based on industry-leading,
top-class goals.

We established E-COMPASS (Environmental
Co-Creation by Material, Process and Subcomponent
Solutions) in June of this year as a new supply chain
sustainability initiative. We will actively endeavor topreserve the global environment throughout the
supply chain. (Fig. I)
Human Resources
We believe corporate growth is about people, andemployees both create and fulfill company values. Basedon this approach, we place importance on the following
three perspectives.
The first perspective is from the corporate culture andcodes of conduct that we have cherished since ourfounding, and we summarized them as TEL Values1. We
always keep in mind the TEL Values as we strive to create
a company replete with dreams and vitality.
The second perspective is from management thatemphasizes motivation. “Employee capabilities andmotivation” is essential for the Company’s growth, andwe focus on improving employee motivation together
with the strengthening of human resource development
such as through TEL UNIVERSITY2. We see the main
components of employee motivation as (1) dreams andexpectations of the Company’s future; (2) opportunities
to take on challenges; (3) fair evaluations that recognize
employee effort; and (4) an open workplace. Based onthese components, we introduced a new humanresources system in July of 2017 to promote theimprovement of communication between managers and1 Refer to TEL Values on p. 12
2 TEL UNIVERSITY: An in-house educational establishment, helping employees toindependently build their careers and realize their personal goals

Fig. G: Systems for Series of Four Key Processes

Fig. H: Medium-term Environmental Goals

Fig. I: E-COMPASS

Leading-edge systems supporting technological innovation

CO2 emission reduction goals (2030)

Pursue “Digital × Green” change throughout
the supply chain

Products

Deposition

Coater/Developer

Etch

Cleaning

30% reduction

Per wafer (compared to 2018)

Plants and offices

70

Environmental Co-Creation by Material,
Process and Subcomponent Solutions% reduction

TOKYO ELECTRON Integrated Report 2021

Best Products・Best Technical Service

Total emissions (compared to 2018)100

A rate of%renewable energy usage

9

their subordinates. In addition, the Corporate Senior Staff(CSS), consisting of our executive officers andmanagement executives of overseas subsidiaries, reviews
the progress of the entire Group’s overall growth strategy
and additional measures every quarter to improve
openness and mobility within our organization. I also
personally communicate the Company’s direction at
employee meetings being held at each location and listen
to on-site opinions and proposals from employees
directly in an effort to make prompt and accurate
management decisions.
The third perspective is from human resource
diversity. With 76 locations in 18 countries and regions
around the world, 42% of our employees are foreign
nationals. We actively implement initiatives for global
diversity, including appointing the presidents andmanagement executives of overseas subsidiaries mainly
from locally recruited employees. In addition, we are also
undertaking further gender-related initiatives to promote
diversity and inclusion to bring about further growth.

Environmental
PerformanceTOKYO ELECTRON Integrated Report 2021

10

Chapter 1

About Tokyo Electron

Corporate GovernanceAs for corporate governance, we seek to build a highly
effective framework that achieves sustainable growth
while taking into consideration our corporate culture andbusiness characteristics for the proper functioning ofmanagement’s decision-making and supervisory role. We
have introduced a skills matrix in this fiscal year and willencourage diversity in the members of our Board of
Directors and promote further improvement todeliberations. In addition, to further strengthen
compliance and risk management, we have defined 13
business-related and other risks across our value chain
and are working to strengthen our framework to becapable of always going through the PDCA* cycle.
We will build governance that is both proactive andprudent to incorporate our growth potential to the
maximum extent.

TEL Values

To Be a Company that Is Loved andTrusted by All Stakeholders
A rich future that will be realized by semiconductors, andsemiconductors which continue to evolve; the market for
production equipment which support these has entereda further growth phase.
Corporate growth is about people, and employees
both create and fulfill company values. Utilizing our
expertise as an equipment manufacturer and diverse
management resources, we will provide society withhigh-value-added technologies that the world has neverseen and only we can accomplish.
Going forward, we will continue to take on challenges
and evolve to be a truly excellent global company that is
loved and highly trusted by all stakeholders.
We look forward to your continued support and patronage.

* PDCA: The continuous implementation of the Plan, Do, Check, Act cycle toimprove operations

Toshiki Kawai
Representative Director,
President & CEO

Semiconductors= Future

Creating technologies Continuing to takethat the world
on challenges
has never seen
and evolve

Based on the thinking that corporate growth is about people and that employees both create and fulfill company
values, we looked back at the values accumulated since our founding and what it means to be our company andsummarized the codes of conduct that we hope to honor in the future as the TEL Values.
We will start our 60th fiscal year in April of next year. To further grow and keep being a company replete withdreams and vitality in the future, we will open up a new era together with the TEL Values as our foundation.

We have established the TEL Values, and we willcontinue to develop them accordingly in the future.

Pride

Challenge

We take pride in providing high-value
products and services.

We accept the challenge of going beyond what
others are doing in pursuing our goal of becoming
number one globally.

We offer our customers cutting-edge technological products,
along with the highest level of quality and technical service,in the pursuit of total customer satisfaction.
We consider profit to be an important measure of value inour products and services.

We view changes as opportunities and respond to themflexibly and positively.
We are tolerant of failure and consider it important tolearn from the process and results.

Ownership

Teamwork

We will keep ownership in mind as we think things
through, and engage in thorough implementationin order to achieve our goals.

We respect each other’s individuality andwe place a high priority on teamwork.

We always have an awareness of problems and tackle
challenges with enthusiasm and a sense of responsibility.
We make decisions quickly and do what we consider to be
the best course of action.

We create a workplace with an open atmosphere andpositive communication.
We establish relationships of trust with our business
partners in order to facilitate mutual growth.

Awareness
We must have awareness and accept responsibility
for our behavior as respectful members of society.
We strictly comply with laws and regulations and the rulesof society.
We give top priority to safety, health and the global
environment.
We strive to become a company that local communities
hold in high esteem.

P. 53

11

TOKYO ELECTRON Integrated Report 2021

Please also refer to Chapter4 “Achieving Greater Growth”
TOKYO ELECTRON Integrated Report 2021

12

Chapter 1

About Tokyo Electron

Company Overview
Tokyo Electron operates worldwide as a leading company in semiconductor and flat panel display (FPD) production equipment.
By providing the Best Products and Best Technical Service, we are aiming for medium- to long-term profit expansion andcontinuous corporate value enhancement. We are also practicing our Corporate Philosophy by contributing to developing asustainable society through our business.

TEL Solar Services

52.4 (3.7%)

Tokyo Electron (Shanghai)Tokyo Electron (Shanghai) Logistic CenterTokyo Electron (Kunshan)

Tokyo Electron Taiwan(fiscal year ended
March 31, 2021)

Tokyo Electron
Technology Solutions

7 companies at 26 sites
Overseas: 21 companies at 50 sites in 17 countries and regions

Japan:

28 companies at 76 sites in 18 countries and regions (consolidated)

285.2

1970s

1980s

1990s

Mainframe
ComputerSingle Chip
Microprocessor

Personal
Computer

Shifting to a fullscale manufacturer

Listed on the Second
Section of the Tokyo
Stock ExchangeTokyo Electron
KyushuThermal Processing
SystemTokyo Electron FE
Tokyo Electron BP
Tokyo Electron Agency

13

TOKYO ELECTRON Integrated Report 2021

Listed on the First
Section of the Tokyo
Stock Exchange

Accelerating
globalization

1990s

Enhanced the groupstructure in Japan by, forexample, establishing
service andmanufacturing
companies, and set up
overseas subsidiaries
throughout the world

TEL marks a major moveinto development andmarketing of FPD
production equipment

1994

Started direct sales andsupport systems
overseas

Export ofsemiconductor
production equipment
begins

2000s

2010s
DigitalConsumerElectronics

Mobile Phone

1990
1984

■Wafer Process (Front-end)

Lithography(Photoresist coating, Development)■Assembly and Test Process (Back-end)

Etching

Cleaning

Coater/Developer

Plasma Etch System Plasma Etch System

CLEAN TRACKTM LITHIUS ProTM Z

TactrasTM

Single Wafer
Cleaning System

Tokyo Electron Miyagi

TELINDY PLUS TM

Single Wafer
Deposition System

Aspiration toward innovationand new growth

2006“TEL Values” formulated
as code of conduct

2007

Established “TELUNIVERSITY” tostrengthen humanresource development

2015

Establishment of Tokyo
Electron Corporate
Governance Guidelines

Atomic Layer
Deposition System

Trias +TM

NT333 TM
Silicon nitride film

EpisodeTM ULCELLESTATM-

Completed
Transistor Before
Wiring

Photoresist

Wafer

Oxide/Nitride film deposition

History1986(26.6%)* Fractions smaller than 100 million yen are truncated.

Repetition

TEL-Thermco
Engineering Co., Ltd.
began domestic
production of diffusion
furnaces

3,846(20.4%)

Silicon dioxide film

1968

(fiscal year ended
March 31, 2021)

Asia

Tokyo Electron (World Headquarters)

Worldwide total:

TEL acquires importingand selling rights for
diffusion furnace
manufactured by
Thermco Products Corp.
(U.S.) and begins sales

South Korea

249.7 (17.9%)

Deposition

1964

peopleSemiconductor Manufacturing Process and Our Main Products

1980

14,479billion yen

Tokyo Electron Singapore

Tokyo Electron
Laboratories, Inc.
renamed Tokyo
Electron Ltd.

(57.3%)

Tokyo Electron U.S. Holdings
Tokyo Electron America

Tokyo Electron (Malaysia)

Founded as technical specialized
trading company

8,296(12.4%)

TaiwanTEL Venture Capital

1978(3.7%)

1,399.1

TEL Manufacturing and Engineering of America

Tokyo Electron India

Tokyo Electron
Laboratories, Inc. isestablished with capitalfrom Tokyo Broadcasting
System, Inc.

(28.5%)

Japan

541

1,796

197.5 (14.1%)

Tokyo Electron Israel

1963

Europe(Unit: People)

North America

Japan

TEL Technology Center, America

1960s

China

398.4

Europe152.0 (10.9%)

Tokyo Electron Korea

Tokyo Electron Europe

Southeast Asia, and Others

North America■Branch, Office (including Field Service), Sales Office

TEL Magnetic Solutions

Number of Employees by Region (Consolidated)(Unit: Billions of yen)

63.5 (4.5%)

Number of Sites (As of March 31, 2021)■Head office

Sales by Region (Consolidated)

Photoresist coating

Exposure

Development

Etching

Ashing/Cleaning

Isolation Formation/Gate Formation

2020s~

Interconnect formation

Gate ElectrodeTesting

Packaging/Inspection

Big Data

Single Wafer Deposition
SystemTrias

TM

Intermetal dielectric film
Metal film

Plasma Etch System

Wafer Prober

Wafer Bonder/Debonder

TactrasTM / EpisodeTM UL

PrecioTM XL

Synapse TM V/
Synapse TM Z Plus

Wafer /Dicing Frame
Prober

WDF TM 12DP+

Completed
Semiconductor
Packaging

Metal film

2015

Re-emergence as the
New TEL (Vision,
Medium-termManagement Plan
formulated and new
Corporate Logo created)

2019

Revision of theMedium-termManagement Plan tofurther enhance
corporate value

Contact Formation

Interconnect
Formation

Wafer Probe Testing

Completed Integrated Circuit

Wafer Bonding/
DebondingInspection

Packaging/Assembly

FPD Production Equipment

1999

Category of industry on
the Tokyo Stock
Exchange First Sectionchanged from
“Wholesale Trade” to“Electric Appliances”

FPD Coater/Developer
ExcelinerTM

FPD Plasma Etch/Ash System
ImpressioTM

FPD Plasma Etch/Ash System
BetelexTM

Inkjet Printing System for
manufacturing OLED display
EliusTMTOKYO ELECTRON Integrated Report 2021

14

Chapter 1

About Tokyo Electron

Financial and Non-financial Highlights

業界についてFinancial

As technological innovations drive the growth of the production equipment market,
高まる技術革新への要求に対応するため、
it is essential to provide leading-edge technologies and services.
高度な技術力、整備された体制、強固な財務基盤がますます重要に

Net Sales and Gross Profit Margin
Net sales (Billions of yen)

40.3

Operating Income and Operating Margin

Gross profit margin (%)

42.0

41.2

Characteristics of Production Equipment Business

Operating income (Billions of yen)

40.1

40.4
24.9

1,399.1
1,278.2

799.7

310.5

281.1

19.5

1,127.2

1,130.7

Operating margin (%)

320.6

24.3

22.9

21.0
237.2

155.6

2017.32018.32019.32020.32021.32017.3Net Income Attributable to Owners of Parent and ROE
Net income attributable to owners of parent (Billions of yen)

2018.3

(Yen)

781

758
624

製造装置メーカーの役割
Requirements of Production Equipment Manufacturers
半導体およびFPDの進化に伴い、新しい材料や、
Alongwith evolutions in semiconductors
and FPDs, newより複雑

588

21.8

19.1

2021.3

Cash Dividends per Share

242.9
26.5

248.2
204.3

2020.3

ROE (%)

30.1

29.0

2019.3materials and more complex
structures are being adopted,
な構造が採用され、その製造の技術的難易度が高まっていま
resulting in an increasing degree of technical challenges in their
す。半導体チップには数百億ものトランジスタが集積されてproduction. As many as dozens of billions of transistors are
おり、
ナノメートルレベルの微細加工技術を駆使し、1,000を
integrated
into leading-edge semiconductor chips, whichareproducedthrough
more
than
1,000
processing
steps
fully
超える工程を経て製造されます。このような中、半導体および
utilizing nanofabrication technologies. Consequently, the
FPD製造装置への技術要求は、より一層高度化しています。
市場規模と価値創造
technical requirements for semiconductor and FPD production
製造装置メーカーにとっては、
equipment
are becoming more andエレクトロニクスやメカニク
more advanced.
For production equipment manufacturers, it is extremely

185.2
352

115.2

2017.32018.32019.32020.32021.32017.32018.32019.3Pursuitof Technological Innovations
技術革新の追求
AsIoT、
the spreadofの普及により、
IoT, AI and 5G accelerates
the transition to a
AI、5G
データ社会への移行が加速す
data-driven society, the role played by semiconductors is
る中、半導体が担う役割はますます重要になっています。
becoming
ever more important. The big data era will require ビッlarge quantities of diverse
semiconductors as well as even higher
グデータ時代には、大量かつ多様な半導体が必要になると同
performance. There is no stopping technological innovation in
時に、さらなる高性能化も求められます。大容量化、高速化、
semiconductors, including larger capacity, higher speed,
低消費電力の実現、信頼性の向上など半導体の技術革新は
improved reliability andlower power consumption. Meanwhile,theapplication
scope
for
displays, which form the interface
止まりません。そして、人とICTをつなぐインターフェイスであbetween people and data, is expected to expand thanks toるフラットパネルディスプレイ
（FPD）についても、高精細・低higher resolution, lower power consumption, larger size and
消費電力・大型化やフレキシブルな形状を生かしたデザイン
improved design freedom from taking advantage of flexible
shapes. As long as technological innovations continue,
the
性の向上により用途の拡大が期待されます。
技術革新が継続
semiconductor and flat panel display (FPD) markets will keep
する限り、半導体、FPD市場は成長します。そして、それを支
growing. At the same time, the market for production
える製造装置市場もさらなる成長が見込まれます。
equipment, which supports these devices, can also be expected
to grow further.

2020.3

importantto develop
highest-performance equipment thatス、
プロセス、
ソフトウェアなどさまざまな領域における専門
helps
realize
semiconductor
and FPD technological innovations
性を駆使し、半導体およびFPDの技術革新を実現する最高のby fully utilizing specialized expertise in a variety of fields,
性能の装置を開発することが極めて重要となります。
including electronics, mechanics, process and software. そのた
Therefore,
it is crucial that manufacturers comprehend
customer
め、
顧客との確固たる信頼関係に基づき、ニーズを早期に把needs early, based on a solid relationship of mutual trust with
握するとともに、自社内に留まらず顧客やコンソーシアムと協
customers, and carry out research and development
働し、継続的に研究開発をおこなうことが必要です。
continuously
not only in-house but also with customers また、and 将
consortiums. In
addition, to carry out research and development
来を見据え、
複数世代にわたる研究開発を実施するためにthat span multiple generations with an eye toward the future,は、強固な経営・財務基盤も不可欠です。さらに、装置の安定
solid management and financial foundations are also essential.
稼動を支える技術サービスの重要性もさらに高まっており、
Furthermore, the importance of technical services that supportよstable equipment operation is continuing to increase,and the
り付加価値の高いサービスの提供に向けて、AIなどの活用も
utilization of AI and other technologies is actively being
積極的に進められています。
promoted toward providing higher-value-added services.
また事業活動においては、In our business activities, it is部品・材料の供給、
also crucial to build装置の組み
asustainablesupply
chain
based
on
partnerships
witha variety of
立てや調整、通関・物流など、さまざまなサプライヤーとのsuppliers, including those who supply parts and materials,
パートナーシップに基づくサステナブルなサプライチェーンのassemble and adjust equipment, and perform customs
構築も欠かせません。
clearanceand logistics operations.
Moreover,as a “Digital× Green” society is being
promoted, theこれらに加えて、「デジタル×グリーン」
社会が推進される
demand for reducing environmental impact is also heightening.
中、環境負荷低減の要請も高まっています。製造装置メーカー
Toward the realization of a sustainable society, productionには、
持続可能な社会の実現に向けて、
低消費電力の半導体
equipment
manufacturers are required to contributeto thepreservationoftheglobalenvironment
throughvarioussteps,
およびFPDの開発への貢献や、製造装置の生産性向上、事業
such as contributing to the development of low-power所におけるオペレーションの効率化などを通して、地球環境
consumption semiconductors and FPDs, increasing theの保全に貢献していくことが求められています。
productivity of their production equipment and improving theoperational efficiency of their plants and offices.

2021.3* For amounts shown in billions of yen, fractions smaller than 100 million yen are truncated. Percentages are calculated using the actual non-truncated values and rounded off.

Non-financial Fiscal 2021
R&D initiatives
R&D expense

136.6

billion yen

Number of patents owned

Semiconductor production
equipment

18,69296.7
1 2
この図だけ使ってください→No.
ormarket share1

ISO 90012/140013 certification
key manufacturing sites in Japan

Waste material recycling rate

Turnover rate4

100

98.8

2.5

％

Percentage of respondents who selected“Very Satisfied” or “Satisfied”
in the customer satisfaction survey

％

％

％

Number of
TEL FOR GOOD5 programs

136

1 Our estimate. Equipment included:
Coater/Developer (No. 1), Cleaning (No. 2), Plasma etch (No. 2), Gas chemical etch (No. 1), Diffusion furnace (No. 1), Batch deposition (No. 1), Metal deposition (No. 2) and Wafer prober (No. 1)
2 ISO 9001: An international standard for promoting continuous maintenance and improvement of quality management systems to provide better products and services to customers
3 ISO 14001: An international standard for environmental management systems established to mitigate the direct and indirect impact that an organization’s activities, products and services haveon the environment
4 Turnover due to personal circumstances
5 TEL FOR GOOD: A brand name that represents our social contribution activities

15

TOKYO ELECTRON Integrated Report 2021

Technological innovations driving the growth of the production equipment market

Requirements of production equipment manufacturers
R&D from a medium- tolong-term perspective andsolid management andfinancial foundations to
support it

Development ofhighest-performanceequipment that realizes
technological innovations

Solid relationship ofmutual trust withcustomers

Specialized expertise in avariety of fields, including
electronics, mechanics,
process and software

Building of sustainablesupply chains

Provision ofhigh-value-added
technical services

Initiatives to reduce
environmental impact

TOKYO ELECTRON Integrated Report 2021

16