TOKYO ELECTRON AT A GLANCE(BY BUSINESS)COMPOSITION OF SALESFOR 2005

OVERVIEW OF 2005 AND BASIC STRATEGY(New policies)

INDUSTRIAL ELECTRONIC EQUIPMENT(Billions of Yen)

SEMICONDUCTORPRODUCTION
EQUIPMENT

800600400

71.9%20002004

2005

This division offers proprietary products and outstanding products sourced fromother companies as well as related services to customers, all of which areclosely matched to their needs. In fiscal 2005, Tokyo Electron received a steadystream of orders from manufacturers stemming from demand for system LSIs
incorporated in digital consumer electronics and robust demand for memory.
Together with the introduction of new products and other factors, this resulted
in sales of ¥457.2 billion (based on newly adopted accounting policies).
As the market leader, Tokyo Electron will continue to develop equipment
compatible with 65nm and finer design rule processes, as well as bring to market new products embracing new materials and technologies. Tokyo Electron will
also continue to set itself apart through the provision of new value, such as byincorporating metrology technology in production equipment.

■ Previous policies■ New policies

FPD PRODUCTIONEQUIPMENT

11.8%

COMPUTER NETWORKThis business provides products and services drawing on the advanced technological capabilities acquired from the development of semiconductor production
equipment. In fiscal 2005, orders were brisk as LCD panel manufacturers
moved strategically to increase their supply capabilities to popularize and expand the market for flat-panel TVs. As a result, sales were ¥75.0 billion (basedon newly adopted accounting policies).
FPD production equipment will be required to handle increasingly larger
glass substrates. Tokyo Electron aims to enhance its market-leading position
by working hand in hand with customers on the development of productswith long-term growth prospects.

This business provides world-leading products and solutions for the broadband
era, such as storage area network (SAN) and Internet-related solutions. In fiscal
2005, efforts were made to expand sales of SAN, network and broadband solutions. Sales were ¥16.0 billion. Sales fell 13.5% from the previous fiscal year.
Undeterred by this performance, the business will work to provide upgraded support services and expand sales of cutting-edge products offering high added-value.

2.5%

ELECTRONIC COMPONENTS(Billions of Yen)

200150100

13.6%5002004

2005

Operations in this business are the responsibility of consolidated subsidiaryTokyo Electron Device Limited. This company selects and offers the world’s bestproducts from leading suppliers to deliver total solutions for customers’ needs.
In fiscal 2005, the Electronic Components segment turned in sales of ¥86.2
billion on firm growth of semiconductor products for use in digital consumer
electronics. Semiconductor products accounted for around 90% of segment
sales. As a result, segment sales rose 2.4% from the previous fiscal year.
Tokyo Electron’s goal is to become the leading technology trading company,
trusted by customers and suppliers alike. Tokyo Electron’s approach, as it
strives to achieve this goal, will be to focus on providing thorough technicalsupport for value-added products and to beef up development of own-brandproducts and contract design services.

Coater/Developer
CLEAN TRACK™ LITHIUS™

Plasma Etch System
Telius™

■ ORIGINAL PRODUCTS
Coater/Developer
Spin-on Dielectric Coater/EB Cure
Mask Coater/Developer
Plasma Etch System
Thermal Processing System
Single Wafer CVD System
SPA Plasma Processing SystemAuto Wet Station
Single Wafer Processor
Wafer Scrubber System
Wafer Prober
Dicing Frame ProberIntegrated Metrology
ODP (Optical Digital Profilometry)■ DISTRIBUTED PRODUCTS
FIB/SEM System (FEI Company)
Film Metrology Tool
Yield Management Software(Yield Dynamics, Inc.)
X-ray Diffraction Measurement Equipment(Bede Scientific Instruments Ltd.)Electron-Beam Defect Inspection System(Hermes Microvision Inc.)FPD Coater/Developer
FPD Plasma Etch/Ash System

FPD Coater/Developer
CL1300FPD Plasma Etch/Ash System
IMPRESSIO■ BUSINESS NETWORK SOLUTIONS■ SAN SOLUTIONS■ ENTERPRISE SECURITY
SOLUTIONS■ AEROSPACE PRODUCTS

Brocade Communications
Systems, Inc.
Fibre Channel Integrated
Fabric Switch

F5 Networks, Inc.
Local Traffic Manager

Computer/Networks
Advanced Digital Information
Corporation (ADIC)ALAXALA Networks Corporation
Brocade Communications
Systems, Inc.
CipherTrust, Inc.
Data Domain, Inc.
DataPower Technology, Inc.

■ SEMICONDUCTOR PRODUCTS■ BOARD COMPUTER PRODUCTS■ SOFTWARE■ OTHER ELECTRONIC COMPONENTS

Fujitsu Ltd.

Xilinx, Inc.

Advanced Micro Devices, Inc.
Agilent Technologies, Inc.
Ardence, Inc.
Cavium Networks, Inc.
ChaosWare Inc.
Conexant Systems, Inc.
Cosel Co., Ltd.
Digital Electronics Corp.
Entropic Communications, Inc.
Emuzed, Inc.
ERNI Elektroapparate GmbH
Eudyna Devices Inc.

Emulex Corporation
Extreme Networks, Inc.
F5 Networks, Inc.
GoAhead Software Inc.
Hewlett-Packard Japan, Ltd.
Hitachi, Ltd.
Isilon Systems, Inc.
Juniper Networks, Inc.
McDATA Corporation
Meru Networks, Inc.
nCipher Corporation Ltd.
NeoScale Systems, Inc.
TimesTen Performance Software, Inc.
VERITAS Software Corporation

Aerospace Products
BAE SYSTEMS
Conax Florida Corp.
Scot Inc.
H. Koch & Sons Corp.
Irvin Aerospace Inc.
ITT Aerospace Controls Corp.
Pacific Cast Technologies
DIT-MCO International Corp.
McCormick Selph, Inc.
Kontron Embedded Technology, Inc.
Z Microsystems Inc.

Freescale Semiconductor, Inc.
Fujifilm Microdevices Co., Ltd.
Fujitsu Ltd.
Fujitsu Media Devices Ltd.
Infineon Technologies AG
Integrated Device Technology, Inc.
Intel Corp. (Dialogic Product)Intersil Corp.
Kopin Corp.
Legerity, Inc.
Linear Technology Corp.
Metrowerks, Inc.
Microsoft Corp.
3M (Minnesota Mining andManufacturing Co.)
Motorola, Inc.
ON Semiconductor Corp.

PFU Ltd.
Phoenix Technologies Ltd.
Pixelworks, Inc.
Portwell, Inc.
Potentia Semiconductor Corp.
Ramtron International Corp.
SafeNet, Inc.
Shinko Electric Industries Co., Ltd.
Texas Instruments Inc.
Tokyo Electron Device Ltd.
Tundra Semiconductor Corp.
Winchester Electronics
Woodhead Industries, Inc.
Xilinx, Inc.
Zarlink Semiconductor Inc.

TOKYO ELECTRON LIMITEDANNUAL REPORT 05

12 >> 13

TOKYO ELECTRON AT A GLANCE(BY GEOGRAPHIC REGION)COMPOSITION OF SALESFOR 2005

SALES

OVERVIEW OF 2005

(Billions of Yen)

(New policies)JAPAN

The high level of sales in theprevious fiscal year continued infiscal 2005 thanks to active
investment in logic products,
system LSIs and memory for
digital consumer electronics.

30020036.6%

1000U.S.

2004■ Previous policies■ New policies

2005

Investments increased in MPUand other logic products,
reflecting strategic investments bymemory manufacturers andhealthy demand for PCs.

300
200

9.9%

1000EUROPE

2004■ Previous policies■ New policies

2005

Steady investments were made inlogic devices for MPU, onboard
automotive, communications andother applications.

300
200

4.9%

1000

SOUTH KOREA

2004■ Previous policies■ New policies

2005

Sales increased sharply, theresult of large investments bymemory and FPD manufacturers.

300
200

13.4%

1000TAIWAN

2004■ Previous policies■ New policies

2005

Logic fabs and memory manufacturers made substantial investments. Capital expenditures for
FPD manufacturing equipment,
particularly for large substrates,
were also brisk.

300
200

22.2%

1000

CHINA AND
SOUTHEAST ASIA

2004

■ Previous policies■ New policies

2005

300

Supported by broad-based demandfor devices, there was a large
volume of investments by fabs.

200

13.0%

10002004■ Previous policies■ New policies

2005