Research and Development/Intellectual Propertyn Research and Development
Today, technology is not only increasingly advanced but alsochanging rapidly. Consequently, R&D operations have to be more
flexible to anticipate the market needs and more aggressive tomeet the challenge of new unknown technologies as well.
In order to enhance both early starts and the streamlining ofthe R&D process, Tokyo Electron has introduced a new structure in
R&D operations, consisting of three stages: product development(D), research (R), and the feasibility study (FS). Executives of eachdivision can make a decision to implement FS projects speedily
and a committee consisting of technology executives discusses
whether each project can move on to the next stage as needed.
In the semiconductor production equipment sector, Tokyo
Electron is accelerating development not only of equipment but
also of processes by joining the Albany Nanotechnology Project,which is supported by the state government of New York. Moreover, the Company has formed collaborations with International
SEMATECH and imec of Belgium, focusing on identifying potential
demand at an early stage.
We are aiming to create new businesses through FS. The
research area is not limited to Si (Silicon) integrated circuits, but isexpanding to compound semiconductors such as SiC (SiliconCarbide) and also organic semiconductors for display. The research
activity in this new area has already grown to be a major part ofthe corporate R&D division activities.
Nowadays, even cutting-edge technology easily diffuses acrossnational borders, thereby making the competition become more
intensive. Continuous R&D effort is of the essence to produce a“winning” product. Tokyo Electron is pursuing new technologicaladvances incessantly and eyeing “the world of nanometer”.

Pushing the Boundaries of SPE Technology
The limitation of scaling has been the hottest topic in the semiconductor industry for years. Although the semiconductor industry has
faced technological crises several times in its history, innovativetechnology has always overcome such difficulties. Tokyo Electron isleading the way with cutting-edge technology for the continuous
growth of the semiconductor and equipment industries.
In finer pattern delineation, Tokyo Electron has developed new
double patterning technology enabling half pitch 13nm line &space. This is the finest pattern which has been fabricated using acommercial exposure tool.

In addition to this double patterning process, Tokyo Electron is
also developing a novel clean track system for EUV lithography forthe coming 10 nm generation.
A critical issue with scaling is “fluctuation” of transistor performance such as the threshold voltage and drain current. Excessenergy in thermal and plasma processes can cause damage, leading to “transistor performance fluctuation”. To minimize theenergy applied to a wafer is essential to suppress the fluctuationin the manufacturing process. Based on this understanding, Tokyo
Electron has commercialized a novel dry etch system using RLSA
plasma which enables damage-free etching with low energy andhigh electron density.
In addition to finer pattern delineation, new functional materials are indispensable to increase packing density. Tokyo Electron
supplies High-k / metal gates for logic devices, novel dielectric filmand electrodes for DRAM capacitor. Furthermore, CVD of phasechange material and resistive material have also been developedby the R&D division for the emerging memory devices.
3D (three dimensional) is a novel approach to accomplish
higher packing density as well as a higher chip performance. Not
only 3D memory cell stack but also 3D chip stack technology has
been attracting much attention for many years. In the 3D memory
cell stack area, Tokyo Electron is preparing deep hole etching athigh rates together with its metal filling technology. In the 3Dchip stack area, the Company is also a top tool supplier, and hascommercialized high rate TSV (Through Silicon Via) etch systemand developing a low temperature insulator deposition system.

Working on Environment and Energy-related Issues
Tokyo Electron is also working on global environment and energyrelated issues.
The first of the Company’s initiatives is concerned with the photovoltaic (PV) cell. For the Si thin film PV cell, which has a highgrowth potential, we are developing equipment with high productivity for Si thin film by leveraging semiconductor and FPD production equipment technology. Moreover, we are conducting researchand development activities on new PV cell equipment with highefficiency and low cost.
Our second contribution is energy saving through power electronics. The SiC device is expected to become a revolutionary
technology, a once-in-decades innovation. A key technology in theTechnology Innovation for Continuous Scaling
1960

Moore’s Law

Wafer Enlargement

1970
1980

Scaling / Wafer Enlargement
Technology

1990
2000
2010
3 Dimensional Integration
Technology

Stacked dies

14

Tokyo Electron

Annual Report 2010

FINFET

2020
2030
2040

SiC power device is epitaxial growth on SiC substrates. We havedeveloped an SiC epi tool that forms epitaxial layers with superior
quality as well as high productivity. This equipment will belaunched in 2010.

Exploring New Fields
Tokyo Electron is meeting the challenge of moving into new fields
by leveraging semiconductor and FPD manufacturing equipment
technology. The Company has formed collaborations with universities and venture companies that possess complementary technology

to enhance new technology development. These collaborations are
not limited to domestic universities but are spreading to universities
and research institutes in foreign countries.
Furthermore, Tokyo Electron takes part in research programs
organized by overseas consortia to identify new and promisingtechnology for the future of semiconductors.
In 2006, the Company established TEL Venture Capital, Inc.,
headquartered in Silicon Valley, for investigating new technology.
TEL Venture Capital has already made investments in several venture companies that possess promising technology.

n Intellectual Property
Tokyo Electron understands that it is vital to protect the intellectual property rights of independently developed proprietary
technologies and products to ensure the smooth growth ofbusinesses. The integration of our intellectual property strategy
with our technological and product strategies is thus importantto realizing the maximum benefits expected.
The needs of device manufacturers, our customers, have been
diversifying, and they are also increasingly emphasizing reliable
process performance and higher productivity from productionequipment. Consequently, the role of equipment manufacturers
such as Tokyo Electron in developing semiconductor/FPD/ photovoltaic cell manufacturing technology is increasing. Within thiscontext, Tokyo Electron strives to bolster the protection of its
intellectual property by actively filing patent applications forequipment recipes, software technologies, process management
technologies for various types of manufacturing equipment, andother technologies.

We are also optimizing our number of patent filings in stepwith market and competitor trends in our business fields. In
particular, our number of patent applications filed in Korea andChina continues to rise. These filings reflect Korea and China’s
growing importance in our recent business strategies, as well as
our patent strategies in response to the rapid increase in filings
from Korean semiconductor and FPD production equipment
manufacturers. Most notably in Korea, Tokyo Electron is ranked
4th among foreign companies in the number of patent applications filed (447 applications in the year 2009), according toresults announced by the Korean Intellectual Property Office.
As of March 31, 2010, Tokyo Electron held 3,396 patents inJapan and 8,298 patents overseas. As part of proper asset management, we periodically assess Tokyo Electron’s patent portfolio,
ensuring we have an optimum inventory in line with the statusof sales in each business and country, and with the filing trendsof competitors.

Contribution of License-related Activities
In building and implementing our intellectual property rights
strategy, we do not view intellectual property rights obtained forproprietary products and developed technologies as a source ofincome from licensing to other companies. Rather, we view thisas a method of differentiating our own products and bolstering
our competitive advantages.
Technologies in Tokyo Electron’s business fields are becoming
increasingly advanced and complicated. To effectively develop
new products incorporating leading-edge technologies, andbring them to market as quickly as possible, it is essential toutilize all available intellectual properties. From this viewpoint,
Tokyo Electron not only respects the intellectual property rights
of others, just as we do our own, but also makes effective use ofthem through obtaining licenses.

Number of Patent Applications(Applications)
1,000
800
600
400200006

07
Japan

08
U.S.

09

EuropeKorea

10TaiwanChina

Status of Intellectual Property Application
The graph in this section shows the number of patent applications
filed by Tokyo Electron as of March 31, 2010. In addition to filing
applications for core technologies vital to our strategies in eachbusiness division, we vigorously promote the development of apatent portfolio that encompasses the technologies that support
our core technologies. Tokyo Electron’s patent portfolio has beenhighly acclaimed, including as shown by being ranked No. 1 insemiconductor production equipment operations in the PatentPower Scorecards published in IEEE Spectrum in January 2010.

Ranking of U.S. Patents in 2009
Semiconductor Production Equipment Manufacturing
RankCompany, Country

Adjusted Pipeline Power

1Tokyo Electron Ltd., Japan

792

2

KLA-Tencor Corporation, U.S.

536

3

Disco Corporation, Japan

322

4

FormFactor Inc., U.S.

312

5

Applied Materials Inc., U.S.

266

Source: IEEE Spectrum/January, 2010

Annual Report 2010

Tokyo Electron15