Commitment to Environment, Health and Safetycomparisons of old and new models show a reduction in
the environmental burden of new equipment. Utilization ofthis assessment in our product development process also
allows us to achieve continuous improvement inenvironmental aspects of our products.

Activities to Reduce Environmental Impact
Tokyo Electron recognizes that the protection of theenvironment and a commitment to sustained environmental
improvement are top priority issues for mankind as well as
issues to be considered in business management. At theCompany, achieving social prosperity in harmony with theenvironment is always first and foremost in our minds.
Through the environmental activities described below, weare aiming to become a company with overall trust from its
stakeholders. The following is an explanation of some of
our achievements in the environmental field.

Below we introduce an example of LCA implementation bycomparing the new thermal processing system,
TELFORMULA with the conventional model, ALPHA ()-303i.
Lead-Free Solder Movement
Based on the European Union (EU) directive, the use ofmercury, cadmium, lead and other hazardous substances inelectrical and electronic equipment will be banned inEurope after June 2006. Although semiconductor
production equipment does not fall under this directive, theCompany is voluntarily and systematically manufacturing
our products lead free as part of our efforts to forestall
further pollution.

LCA Initiative
The Company uses Life Cycle Assessment (LCA) to
quantitatively assess a product’s environmental burden
during the course of its life at each stage: from raw
materials through manufacturing, transport, use, anddisposal. For major types of equipment, it has been proventhat following the implementation of a LCA program,Comparison of Energy Consumption (C02 Equivalent) between ALPHA ()-303i and TELFORMULA
Electricity

N2

Water Coolant

ExhaustConsumables

Dry Air

Process Gas(T-CO2)Total

ALPHA ()-303i

463.1

215.6

43.5

44.1

1,217.4

8.7

1.6

1,994.1

TELFORMULA

259.5

96.9

72.2

40.6

36.5

33.4

2.3

541.4

Lead-Free Implementation Plan• Restriction of lead use in EU : Cancer and soil pollution prevention– WEEE:07/2005, RoHS:07/2006 — for electric and electronic equipment– Many Japanese electric manufacturers stopped using lead by the end of 2003
Semiconductor equipment is out of scope, but procurements of components including lead will be difficult in the near future.
• Various lead-free soldering technology : Sn-Ag-Cu, Sn-Zn-**, etc.
– Potential affection for melting point and adhesiveness• To be achieved with a quality and reliability guarantee of lead-free component• The Company’s Policy: Implement from the start of 300mm equipment production

Items

1Q

Lead-free task team started activity
Plan announcement to venderTechnology and material examination to apply
Vender investigation and cooperation plan
Promotion plan to OEM makerEvaluation of PWB and ASSY (unit)
Evaluation of PWB and ASSY (built-in)
Preparation for production
Start production

14Tokyo Electronwww.tel.com

FY2003
2Q
3Q

4Q

1Q

FY2004
2Q
3Q

4Q

1Q

FY20052Q
3Q

4Q

FY2006
1Q

Environmental Report
The Company has been publishing environmental reports
since 2002. We believe that it is important to provide thepublic as much information as possible about ourenvironmental activities to strengthen communications bysharing it. The results for the fiscal year ended March 2004
will be available in the Environmental Report 2004, to be
published in autumn 2004.

Green Procurement
Almost all of our materials and parts for the manufacturingof semiconductor manufacturing equipment are sourced
from suppliers. It is essential to have the cooperation ofsuppliers, in order to effectively use “Green procurement”
to source materials in a manner that reduces environmental
damage. To promote their cooperation, the Company
issues a Green Procurement Guideline, distributes it tosuppliers throughout Japan, and holds green-procurement
seminars. As a leader in our industry, we are actively
working to introduce trainer education programs to help
educate suppliers about green procurement as well as
create other educational systems.

Safety Activities
Based on giving top priority to the safety and health of ouremployees, customers, and everyone involved with theCompany’s business, we established the TEL Group Credoand Principles on Environment, Safety and Health in 1998.
These guidelines clearly state that employees areresponsible for being constantly aware of safety and healthconsiderations in each and every business activity. For
thorough implementation of these guidelines, we proceedwith risk assessments of our shipped products and each
assembly and start-up process. Where safety risk is judged
to be high, we take systematic steps to reduce it. We arealso making efforts to discover and eliminate dangers in ourwork processes by anticipating them prior to those
processes.

Reducing Industrial Waste and Recycling
The Company has set a goal of reducing industrial wastefrom its manufacturing-related operations in Japan as close
to zero as possible by the fiscal year ending March 2005.
Targeting zero emissions, we are proceeding with industrial
waste reduction and recycling measures. Specific activities
include the separation of wastes at each operation into
categories for collection, the introduction of processing
equipment for effluents, finding recycling companies, andimproving industrial processes which do not produce
industrial wastes. Through these activities, our recycling
ratio has been steadily rising as more effective use is madeof our resources.

Industrial Waste Output and Recycling Ratio(Tons)
6,000(%)
100
93.1

5,000

77.4

4,772
4,238

80
Environmental Report 2003

69.7

4,000

59.9
55.2
49.7

3,000
40.9

3,938

60

3,268

3,657
3,179

3,189

40

2,000
15.3

20

1,000

847

00199719981999

2000

Amount of industrial waste

2001

2002

2003

2004

Recycle ratio
Green Procurement Guideline

Annual Report 2004

15