TOKYO ELECTRON ANNUAL REPORT 2013

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CONTENTSCONTENTS

Financial Highlights

Business Overview

Top Message

Special Feature

Review of Operations
and Business Outlook

Corporate GovernanceFeatures — Technological Innovation in Pursuit of Growth
Feature 3: Technology Acquisitions

Corporate CitizenshipIntellectual Property

Financial Section

Corporate Data

Feature 1: Product Development / Feature 2: Research and Development

Feature 4: Manufacturing

Features: Technological Innovation in Pursuit of Growth
Feature 4: Manufacturing

Manufacturing that Maximizes Customer Value
Tokyo Electron continuously aspires toand design stage to realize manufactur-ate production equipment that has the

Our customers also have highThroughout all stages of operations,realize manufacturing that maximizes

ing that is continuously responsive tofunctions that make these possible.

expectations for Tokyo Electron’s pro-beginning with marketing, the thoroughcustomer value. Two years ago wemarket demands. The broader defini-To realize those functions it is firstduction equipment. They most often

implementation of waste elimination via

began operations at the new Tokyo

tion of quality includes functionality,and foremost essential to quickly create

seek clearly specified conditions for

TPM** and prevention of defective

Electron Miyagi plant, which deals insafety, environmental soundness, reli-differentiated technologies throughproducing non-defective products, easeproducts is indispensable.

etch systems from development to pro-ability, maintainability and cost effective-

combinations of cutting-edge and con-of set-up, reliably stable performance,

Tokyo Electron will mark its 50thduction. Then, last year, in China, theness. Manufacturing begins withventional technologies (value creation).

predictability of variations in perfor-

anniversary this year. Looking toward

principal market for the flat panel dis-marketing: precisely understanding

We then need the manufacturing tech-mance, and ease of repair. Again, these

the next 50 years, we will spare noplay (FPD) production equipment busi-

each customer’s desires and problems.

nology to consistently produce theattributes must be built in from theeffort to advance manufacturing andcontinue to grow as a manufacturer.

ness, we began operations at a newproducts we have designed at the low-

design stage to achieve the desired

plant manufacturing FPD etch systems

innovations in semiconductors are low

est cost (maximizing value).

level of quality.

and carrying out a repair business for

power consumption, high-speed pro-Furthermore, in realizing these func-

their key components.

cessing and low cost. These qualities

tions, it is important that they bewith marketing. Quality must be built in

The most sought-after technologicalTokyo Electron’s basic stance with

To reiterate, manufacturing begins

can be realized through miniaturization,backed by core, foundational technolo-

from the development and design

regard to manufacturing is to build

the use of new materials and newgies in order to build a competitivestage. Furthermore, in order to quickly

quality, cost performance and produc-device structures, larger wafers, andadvantage that can be sustained intobring new products to market, concur-tion processes from the development

total cost reduction. It is our job to cre-

the future (the source of value).

rent engineering* is also necessary.

* Concurrent engineering: a product development methodology in which all steps of design and production planning, including concept design, detailed design,production design and pre-production, are performed inparallel.
** TPM: Total productive management coordinates all activities
throughout an organization to prevent loss and improve
efficiency.

Manufacturing operations of FPD etch systems begun
at new Kunshan plant in China

The Source of Value
Core, foundational technologies
to build a competitive advantagethat can be sustained
into the future

Maximizing Value

Value Creation

Consistently producing
products developed
at the lowest cost

Realizing rapid development
of differentiated technologies
combining cutting-edge
and conventional
technologies

Tokyo Electron (Kunshan) Limited

Tokyo Electron (Kunshan) Limited has begun manufacturing operations of FPD etch systems in China, the main market for FPD production equipment, to improve responsiveness to customers and reduce costs.

Hirofumi Kitayama
Representative Director,Senior Executive V.P., Business Ethics,
Production and Technology,
System Development Division, IT,
General Manager, Production Division(Quality)