Research and development
Research and development for the future

ProductcompetitivenessAs lifestyles and business models undergo dramatic changes in the era of the Internet of Things (IoT), it isanticipated that the use of semiconductors will expand in all industries, and there will be demands for evenmore advanced technologies. As electronics become even familiar for people, semiconductors becomea larger part of everyday life. Tokyo Electron (TEL) has settled on the TEL Technology Vision 2030 from a
medium- to long-term perspective, and is holding lively discussions regarding technology for the future aswell as its contribution.
TEL Technology Vision 2030

Technologyfor Growth

Abilityto Execute

Solution provider
for the semiconductor
industry

Solution provider for all industries
with connections to semiconductors

Employee
Vitality

Now2030Development system
TEL has a system, which promotes technology development and technology innovation for the next
generation, in collaboration with the Development & Production Division and business divisions to bringhigh-value-added products to market in a timely fashion. In fiscal year 2018, Tokyo Electron Technology
Solutions was established, merging the factories in Yamanashi and Tohoku. As a result, resources relating todeposition technologies—one of our strengths—were centralized, and our process integration functions
were strengthened. Also, in Tokyo Electron Miyagi, construction of a new R&D building has begun toaccelerate the technology innovation of etch systems. We are creating one of the foremost development
environments in the industry.

Create strong next-generation products
Priority themes
In the era of the Internet of Things (IoT), when a variety ofobjects can connect to the internet, semiconductor andflat panel display technologies support the expansion of
new business models and lifestyles. In such circumstances,
it is important to deliver high added-value and competitive
products in a timely fashion in order to ensure continuous
business expansion. Tokyo Electron engages in cuttingedge development to produce next-generation products
featuring innovative technology. Furthermore, we areconscious of the importance of global environmental issues
such as climate change and resource depletion and we
strive to implement measures to reduce the environmental
burden of our products. Through innovative technology
and environmentally conscious products that will support
the next generation, we contribute to the building of asustainable society.

15TOKYO ELECTRON SUSTAINABILITY REPORT 2018

Tacklingtechnologicalinnovation

Intellectual property management

Environmental
contribution ofproducts

Relevant SDGs

Industry, innovationand infrastructure

TEL’s basic policy is to increase corporate revenues by supporting business through intellectual property(IP) protection. IP personnel are assigned at R&D/manufacturing facilities and at the headquarters. In
order to boost competitiveness of TEL’s products, they build IP portfolios that go well with technology andproduct strategies through assessment of R&D and marketing activities from various angles including R&D
and marketing viewpoints.
In fiscal year 2018, TEL introduced an integrated IT platform for managing TEL’s worldwide intellectualproperties. This platform is accessible from any employees involved in IP activities, and strongly supports
worldwide R&D activities. We have maintained global patent application rates* around 70% in the last
seven years. In 2017, we maintained high patent application success rates: 71.5% in Japan and 78.0% in theUnited States. To increase IP awareness, we continuously educate engineers, who are the foundation ofTEL’s R&D strategy; in total around 3,900 engineers have become inventors.

* Global patent application rates:
Percentage of invention applications
filed in multiple countries

Climate action

TOKYO ELECTRON SUSTAINABILITY REPORT 201816

Product competitiveness

Collaborating with consortiums

Use of AI technologies

Along with enhancing its own research and development capabilities, TEL is also engaged in thedevelopment of cutting-edge technologies in collaboration with international and domestic consortiums.
In the U.S. state of New York, we have participated in the Albany NanoTech megaplex since its
establishment in 2003. Here, global device manufacturers and makers of semiconductor production
equipment have participated to build a comprehensive semiconductor production line, where we canverify integrated process development and its effectiveness. Taking advantage of an environment close
to the actual device manufacturing, we also conduct joint research projects aimed at resolving specificissues faced by customers. Based in a world-class development environment, our team of more than 100engineers are advancing efficient development, committed to researching next-generation semiconductor
production equipment and processes directly linked to business.

TEL is promoting the use of AI1 in order to achieve more efficient and stable equipment operation. In
addition to strengthening the training of experts in machine learning, such as through study programs atoverseas universities, in 2017, we established a division responsible for technological innovation utilizing AI,
as well as a division responsible for planning the interdivisional use of data. Thus, we are putting in place
an organizational structure that promotes planning, marketing and development activities on a companywide basis.
With this structure, we are driving our efforts using AI to analyze the vast amounts of data coming out of
our equipment, to help us predict and control the condition of the equipment. By monitoring the operating
status of our semiconductor production equipment in real time via the internet, and using AI to analyze
that data, we target to meet the demands of our customers, namely, maintaining equipment performance,
achieving wafer process uniformity, and avoiding unexpected downtime.

Korea

U.S.

Tokyo Electron Korea
TEL Technology Center Korea

TEL Technology Center, America
CNSE

Addressing advancements in display

Belgium
imec

Singapore
FranceIME

CEA-Leti

Japan
Tokyo Electron Miyagi
Tokyo Electron Technology Solutions
Tokyo Electron Kyushu

Taiwan© CEA / Pierre Jayet

TEL Technology Center, Taiwan

1 AI: Artificial Intelligence

Consortium
Tokyo Electron development sites(as of April 1, 2018)

Flat panel display (FPD) has evolved along with advancements in liquid crystal technology to a highresolution that cannot be identified by the human retina. In recent years, there has been greater adoption,
particularly for smartphones, of organic EL display, which can produce a brighter screen with less power.
These advancements have been supported by technology for forming minute electronic circuits on glass
substrates, for which our equipment is widely used in the etch process.
TEL adopted the industry’s first high-density plasma generation technology, known as ICP,2 anddeveloped PICPTM3 that advanced this technology further. PICPTM creates even more uniform plasmacompared with conventional ICP, enabling fine etch and achieving formation of a uniform fine circuit
over the whole substrate. In addition, this technology provides stable quality, improved productivity, andextends the replacement cycle of consumable parts, thus reducing environmental burden.
In the future, it is expected that demands on the display market will progressively increase for features
such as high definition, low power consumption, Free Form,4 Flexible5 and Touch UI6 on the display market.
Therefore even finer circuit formation is essential to achieve these. TEL will make significant contributions
to the future advancement and development of displays by enabling production of fine, uniform circuits
required for leading-edge displays.

2 ICP: Inductively Coupled Plasma
3 PICP TM: Planar Inductively Coupled
PlasmaTM, which describes thecreation of extremely uniform highdensity plasma on a panel substrate
4 Free Form: Non-rectangular shaped
display
5 Flexible: Bendable and freely
deformable display
6 Touch UI: Touch User Interface is
a computer-pointing technology
based upon the sense of touch

Tackling technological innovation
Integrating logic and memory
In this era of IoT, data centers are processing massive amounts of data such as in information and image
analysis, and as the increasing power consumption of semiconductor devices proves to be an issue,
attention is being drawn to neuromorphic devices inspired by the neural circuits of humans. Computersin data centers consume power in the order of several tens of kilowatts, but the human brain consumes
only about 20W when doing the same processing. Similarly, whereas the operating frequency1 of today’s
semiconductor devices is 5 GHz, the human brain runs at just several tens of hertz. Neuromorphic devices
use synaptic connections2 to integrate the processing function and the memory function, which had
previously been divided between logic and memory of a conventional microprocessor. This enables ahigher degree of information processing with less power consumption like the human brain.
Leveraging its strengths in deposition technologies and pattern technologies, Tokyo Electron (TEL) has
initiated research efforts into new materials needed for next-generation computing, such as neuromorphicdevices, quantum computers, as well as manufacturing processes for utilizing these materials.

17TOKYO ELECTRON SUSTAINABILITY REPORT 2018

1 Operating frequency (or clock speed):
The number of signals per second
to adjust the pace of processing ofmultiple electronic circuits. Indicatesthe processing performance of thecomputer. The higher the frequency,
the more power is consumed.
2 Synaptic connection: A junction
formed between neurons (cellsmaking up the nervous systemof an animal) regarded as having
an important role in learning andmemory.

BetelexTM

ImpressioTM

Executive message
The semiconductor and FPD industry is evolving more and more with the dawning era of the Internet of Things (IoT).
In response, we will create customer value, developing competitive new technologies and products at a rate fasterthan the industry evolves.
We will continue our efforts to create new value by combining and integrating our various technologies withthose of universities, business partners and other external parties. With challenges though comes failure. Our viewis that constructive failure hails future success. We believe that repeated challenges revitalize the organization,
nurture human resources and produce innovative technologies and products, which in turn, will help create value forcustomers in the future.

Yoshifumi Tahara
Senior Vice President and General Manager,
Development & Production 4th Division

TOKYO ELECTRON SUSTAINABILITY REPORT 201818

Product competitiveness
Environmental contribution of products
CO2 emissions across the value chain

Products that contribute to a sustainable society

Tokyo Electron (TEL) believes it is important to recognize environmental impact throughout the value chain in conducting its businessactivities. We aim to resolve environmental problems through leading technology and reliable services, in line with our environmental
slogan “Technology for Eco Life.”

Of the total CO2 emissions from the TEL value chain, emissions arising from product use account for
90% of our total CO2 emissions. For this reason, we have made it a key corporate objective to promote
environmentally friendly product design, and lower the energy consumption of our products.
In fiscal year 2015, we established a goal to reduce energy and pure water consumption by 10% by fiscal
year 2019, using fiscal year 2014 consumption as the baseline. To achieve this goal, we are working toreduce energy use and improve overall throughput. As a result, we achieved the goal for one model in fiscal
year 2016 and three models in fiscal year 2017 ahead of schedule. Moreover, even after achieving the goal,
we have maintained our efforts for these models. For instance, in fiscal year 2017 we achieved our 10%
reduction goal for the PrecioTM XL test system. Then in fiscal year 2018, by switching to energy-efficient
motors, we were able to reduce power consumption per wafer by a further 20%. In addition, in fiscal year
2018, the percentage of sales from energy-saving models based on in-house standards was 92.8% of total
product sales.
To further reduce the overall environmental impact of our products, we must examine our primaryequipment, peripherals, associated facilities, and management at our customers’ factories. Going forward,
it will become increasingly important to improve the operational efficiency of our equipment andencourage overall energy-efficient operations at our customers’ factories.

5,494 kilotons
361 kilotons

152 kilotons

Scope 3 upstream

Scope 1 & 2

Scope 3 downstream

Not from the TEL GroupOwn emissions

Not from the TEL Group

Fuel- and energy-related
activities

Employee commuting

11 kilotons

11 kilotons

Capital goods

Business travel

10 kilotons

137 kilotons
Purchased goods andservices

179 kilotonsWaste generated in operations

1 kiloton

Direct emissions fromfuel & gas use
Scope 1

9 kilotons
Indirect emissions fromelectricity use & heat purchase
Scope 2143 kilotons

End-of-life treatment of sold products

2 kilotons
5,382 kilotons* Based on in-house standards

110 kilotons

Initiatives for product environmental laws and regulations

Downstream

Scope 1: Direct GHG emissions from use of fuel and gas owned or controlled by TEL
Scope 2: Indirect GHG emissions from use of electricity, steam and heat purchased by TEL
Scope 3: Emissions from corporate value chains (excluding scope 1 and 2 emissions), such as product transportation, employee business travel, and major outsourced production processes* Scope 3 is divided into upstream activities, which include emissions associated with purchased or procured products and services, and downstream activities, which include emissions associated with sold products and services

The total of Scope 1 and Scope 2 of the TEL Group is 152 kilotons, while Scope 3 accounts for a total of 5,855 kilotons, which isapproximately 97% of the total. We believe that it is particularly important to develop products with low CO2 emissions during operation,
as CO2 emissions from the use of products sold amount to 5,382 kilotons, which is 90% of the overall total.

TOKYO ELECTRON SUSTAINABILITY REPORT 2018

92.8%

* Test System Precio™ XL power consumption
per wafer

Downstream transportationand distribution

12 kilotons

1920% reduction

Use of sold product

Upstream transportationand distribution

Upstream

Percentage of energy-saving model*
sales in total sales

Power consumption reduction rate*

In order to comply with each country’s environmental laws and regulations pertaining to products, TEL
proactively collects information and takes appropriate action as required. An example of our efforts for EU
REACH1 regulations is that we investigate the presence of any substances of very high concern (SVHC) inarticles, and disclose information appropriately. As for efforts for GHS2 requirements, we provide safety
data sheets (SDS) when selling chemical goods.
In fiscal year 2018, we established a new environmental IT system, making it possible to share
information more efficiently with our supply chain. In addition, we have also continued to offer “web based
training for Product Environment Compliance” to all employees, providing a description of the frequently
revised environmental laws and regulations and product compliance. We also provide suppliers withinformation on the relevant environmental laws and regulations. We had no violations of environmental
laws and regulations during fiscal year 2018.
We will continue to rapidly monitor each country’s environmental laws and regulations, and strive totake appropriate action.

Logistics initiatives

URL

1 EU REACH: An EU regulation
pertaining to the registration,
evaluation, authorisation, andrestriction of chemicals
2 GHS: Globally Harmonized Systemof classification and labelling ofchemicals

www.tel.com/csr/environment/product/

As logistics regulations have become more stringent in recent years and the demand for a lower impact on
the environment rises, TEL has been promoting modal shifts3 and other activities designed to reduce theenvironmental burden of its logistics.

3 Modal shift: Switch of transportationmeans from truck or aircraft to
one that has a lower impact on theenvironment, such as rail or ships

TOKYO ELECTRON SUSTAINABILITY REPORT 201820