TOKYO ELECTRON LIMITEDANNUAL REPORT 07

RESEARCH AND DEVELOPMENT
The objectives of Tokyo Electron’s group-wide R&D efforts are toOne example is the Company’s work on a new type offurther enhance the Company’s competitiveness in the coreplasma source known as Radial Line Slot Antenna (RLSA) forbusinesses of semiconductor and FPD production equipment, anduse in film deposition and etching processes of semiconductor

to develop the new products and businesses that will support themanufacturing. In June 2007, the Company established Tokyo

Company’s further growth in years to come.

Electron Technology Development Institute, Inc., in order toaccelerate efforts to commercialize this technology. InBroad research themes for semiconductor
production equipment

December 2006, Tokyo Electron acquired U.S.-based company

Semiconductor manufacturers, our customers, require production

unique low-energy ion control technology known as Gas

equipment that allows them to achieve finer geometries, higher

Cluster Ion Beam. Tokyo Electron plans to cultivate these as

speed, lower power consumption and higher productivity. SPE

the Company’s core technologies, and expects them to foster

manufacturers are playing an increasingly important role in sup-new innovation in semiconductor production.

porting semiconductor manufacturers in this regard. We believe

Epion Corporation (now TEL Epion, Inc.), which boasts aIn addition, the Company is continuing to make advances in theTokyo Electron’s competitiveness is based on our capability tofield of Micro Electro-Mechanical Systems (MEMS), as part of its

provide production equipment that can realize the process perfor-

efforts to develop future technologies.

mance customers require. Thus, Tokyo Electron collaborates
closely with customers in developing new production equipment.

Promoting more effective R&D via consortia andties with industry and academia

Accelerating R&D efforts to develop newbusinesses that can support future growth

The scope of research and development that Tokyo Electronneeds to address is expanding.

In addition to efforts to enhance existing products, Tokyo Electron

In order to make these research efforts more effective, Tokyois also developing new products and businesses that can contrib-

Electron has been working in collaboration with universities, andute to future growth from a medium- to long-term perspective.

making active efforts in industry consortia as well as projects that
include manufacturers and academic institutions.

Accelerating R&D to Drive Growth

IMEC (Belgium)
Collaboration R&D with IMEC on
immersion lithography andextreme ultraviolet (EUV) lithography

TEL Technology Center,America, LLC

Leading-edge Process
Development Center(Nirasaki City, Yamanashi)Tokyo Electron Technology
Development Institute, Inc.
(Sendai City, Miyagi)

Kansai Technology Center(Amagasaki City, Hyogo)

R&D Expenses(Billions of Yen)

800405

57.0

49.2

43.9

4044.2

About IMECIMEC is a world-leading independent research center in nanoelectronics andnanotechnology. Its research focuses on the next generations of chips and systems,and on the enabling technologies for ambient intelligence.

50.16020003

240607

ANNUAL REPORT 07

TOKYO ELECTRON LIMITEDIn Japan, one example is the semiconductor industry’s MIRAI
project (Millennium Research for Advanced Information Technology). Overseas, Tokyo Electron is participating in the International
SEMATECH project, in the United States; the Albany NanoTech
project, promoted by the New York State Government; as wellas collaborating with IMEC in Belgium. In February 2007, the Company became a new member of the Semiconductor ResearchCorporation (SRC), a semiconductor research consortium which
unites leading semiconductor-related manufacturers with worldclass universities.

Unearthing the world’s most promisingtechnologies
Tokyo Electron’s growth strategy, over the longer term, calls for
the Company to “pursue new innovations” and “create anddevelop new businesses.” The Company is supplementing its own
in-house research activities with efforts to identify, evaluate and utilize
promising technologies developed outside the Company. In July
2006, Tokyo Electron established TEL Venture Capital, Inc. toidentify, evaluate and utilize promising new technologies on a globalscale. TEL Venture Capital is based in California’s Silicon Valley,
which is home to many start-ups and venture capital firms.

Tokyo Electron’s R&D Framework(As of June 2007)

Product development in existing SPE and FPD business units
Tokyo Electron AT Limited

Etch system, CVD system, FPD Etch/ash system

Tokyo Electron Kyushu Limited

Coater/developer, Cleaning system, FPD Coater/developer

Tokyo Electron Tohoku Limited

Thermal processing system

Tokyo Electron TS Limited

Wafer proberR&D for new and advanced technologies
Tokyo Electron Technology Development Center

Research and development

Tokyo Electron Leading-edge Process Development CenterProcess development

Tokyo Electron Software Technologies Limited

Software technology

Tokyo Electron Technology Development Institute, Inc.

RLSA plasma technology

TEL Technology Center, America, LLC.

Process development

Timbre Technologies, Inc.

Integrated Metrology

TEL Epion, Inc.

Gas Cluster Ion Beam technology

Identification of promising technologies
TEL Venture Capital, Inc.

25