Chapter 4

Toward Further Growth

Medium- to Long-term Outlook
In order to build a strong and resilient society in which economic activities do not stop under any circumstances, the world willcontinue to push firmly ahead with implementing ICT (Information and Communication Technology), and computer technology
supporting this technology is also expected to continue to develop further. The evolution and practical application of innovativetechnologies are expected to realize a sustainable world in which people and society are connected in every aspect. Under thesecircumstances, semiconductors are expected to become even more important as social infrastructure, and the semiconductor market
will evolve in more diverse ways as technological demands for larger capacity, higher speed, and lower power consumption increase.
In the semiconductor production equipment business, it is essential to provide new value through manufacturing methods thatrealize ultra-efficient productivity and reduced environmental impact along with the best solutions. At the same time, it is important
to ensure that we achieve net zero greenhouse gas emissions by 2050, and to invest in human capital continuously and aggressively.
Through the realization of our Vision, which specifies our medium-to long-term business aspirations and the direction of our near
future, and through the practice of our Corporate Philosophy, which defines the purpose of our existence and mission in society, wewill meet the expectations of all of our stakeholders.

The Future of Semiconductors
The semiconductor market that supports computer technology isexpected to evolve in more diverse ways in the future. The
performance of semiconductors has been improved throughscaling and integration, but the demand for further performance
improvement to realize computer technology that can process
large amounts of data at higher speed and with lower power
consumption is increasing (Moore’s Law). In addition, with thediversification of applications and services, it is necessary tooptimize semiconductor design, manufacturing technology and theentire system according to the application (Customization).
Furthermore, larger capacity data traffic and their processing andanalysis require an enormous amount of semiconductors. To realizea world in which everyone can enjoy the benefits of computer
technology, it is necessary to reduce the cost of semiconductors
through economies of scale (Hyper-Mass).
For semiconductor production equipment manufacturers, thekey to value creation in the future will be to solve the technologicaland cost challenges of scaling and integration, to quickly propose
the best solutions to meet the diverse needs of semiconductor
manufacturing customers and to provide manufacturing methods
that achieve extremely high productivity and optimize
environmental impact.

tion
miza allots
er
Cu,
o ov

nt
sing
izatio ocesc.
ptim sign, pr ring, etolaeu
tud
divid ation in anufac
inm
Fromoptimiz

Evolution of Technology

A richer world where people and society are
all connected

Expansion of IoT technologies
Smart Manufacturing

Cloud server

Integration

Smart Health Care
PC

Smart Energy

Along with the evolution of technology, the computer
technology that handles information processing also continues todevelop further. In addition to conventional bit-based computerssuch as PCs and data servers that perform mathematicalprocessing, innovative technologies such as quantum computersand brain-inspired computers that copy the movements of thehuman brain are expected to emerge going forward. As thesetechnologies spread throughout society, data traffic will increase
dramatically, and it is predicted that by 2040 it will be 100 times
the 2020 level. A sudden increase in power consumption due tocomputing is expected due to the processing of huge amounts ofdata, and there is a need for new technologies that achieve both
improved performance and lower power consumption.

73 TOKYO ELECTRON Integrated Report 2023

Global Data Traffic

Data volume
will increase

Zetta byte

Semiconductor
devices

Ultra-ef f

100-fold

Hyp
er-M
ass
tp

icien

rodu

ctivityToward the Realization of a Sustainable Society
Furthermore, based on the idea that “our corporate growth isenabled by people, and our employees both create and fulfill
company values,” we will continue to actively invest in humancapital. By striving to build mutual trust between the organizationand employees and maintaining high levels of engagement, we willrealize our Vision of “A company filled with dreams and vitality that
contributes to technological innovation in semiconductors.”
We will utilize our expertise as semiconductor production
equipment manufacturers and all of our management resources
for medium- to long-term profit expansion and continuous
corporate value enhancement, and put into practice our Corporate
Philosophy of “We strive to contribute to the development of a
dream-inspiring society through our leading-edge technologies
and reliable service and support.”

Annual average growthrate of 26%(2020-2040)
Data-40

centric

30

World-class operating margin and ROE
Mobilecentric

20
10

Improved performance throughscaling and integration

Based on the concept of TSV (TEL’s Shared Value), which is to solve
social issues through our business activities, we are committed toproviding further value through the continuous creation ofinnovative technologies. In June 2022, we established a new Vision
and Medium-term Management Plan, and set key financial andsustainability indicators, and are promoting initiatives to achievethem.
In addition to our medium-term environmental goals, we havedeclared our long-term goal of achieving net zero greenhouse gas(GHG) emissions by 2050. While reducing our own emissions,
including increasing to a rate of 100% renewable energy usage at
all of our plants and offices, we will work with our customers andsuppliers to develop technologies to improve the energy efficiencyof our products, including energy-saving equipment and ancillaryfacilities and developing processes that use GHG alternative gases.

Smart Transport
Diversification

Smartphone

Moore’s Lawof smart cities and smarter industries in the plant, agricultural,
medical and energy sectors. These are expected to make our lives
more convenient and contribute to solving various problems thatsociety faces, such as environmental and population issues. It isexpected that the evolution of technology will connect people andsociety in all aspects and realize a sustainable world.

In recent years, the expansion of smartphones, tablets and cloudservers has led to rapid digitization in society as a whole. Alongwith the spread of 5G/6G and the evolution of IoT and AI
technology, a variety of services and solutions are being createdthat make advanced use of huge amounts of data, such as the shift
to EVs for automobiles and autonomous driving, the development

Medium- to long-term profit expansion

Bit-based
computers

Computercentric

BrainQuantum inspired
computers
computers

01990

2000

2010

2020

Source: Omdia (1990-2030), our estimation (2030-2040)

2030

2040(CY)

Medium-termManagement Plan

Realization of Vision:“A company filled with dreams and vitalitythat contributes to technologicalinnovation in semiconductors”

Continuous corporate value enhancement
Practice ofCorporate Philosophy

TSV TEL’s Shared ValueTOKYO ELECTRON Integrated Report 2023

74