About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Higher Productivity

Management Foundation

TEL FOR GOOD

15

Data

Product
CompetitivenessResearch andDevelopment

P. 16

Tackling TechnologicalInnovation

P. 18

SDGs Initiatives
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■

■

■

■

■

■

■

■

■

Create innovative technologies and contribute to
the development of a sustainable society
through the promotion of innovation
Promote inclusive and sustainableindustrialization
Promote scientific research and improve
technological capacity in the industrial sector of
every country

Contribute to the reduction of environmental
impact company-wide by providing products
and services that are conscious of theenvironment
Improve resource use efficiency and expand theintroduction of clean and environmentallyfriendly technologies
Strengthen global partnerships for sustainable
development

Create the best, high-value-added equipment with innovative technology in a timely manner through the development of product marketingand the global promotion of R&D with an eye on future generations
Boost competitiveness by assigning personnel at research, development and production sites worldwide, including corporate headquarters, topromote intellectual property (IP) management, and by building IP portfolios aligned with technology and product strategies
Continuously strive to reduce the environmental impact of equipment and provide technology that contributes to the development of devices
with even lower power consumption, to preserve the global environment
Strengthen product competitiveness by deploying digital transformation, through the use of digital technology as “leverage” to improve added
value and efficiency
TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Higher Productivity

Management Foundation

TEL FOR GOOD

Data

Research and Development
Overseas Subsidiaries

With the evolution of ICT, electronics are more and more indispensable to people’s lives. In addition, there is anincreasing need to realize both the development of a data-driven society and preservation of the global
environment, with the growing demand for semiconductors and displays, which is the base of ICT and
increasing global awareness of the environment. The performance required of semiconductors and displays isalso becoming more diversified.
In order to contribute to the development of a dream-inspiring society, Tokyo Electron is engaged in R&D
with an eye on the future to capture changes in society, including innovations in manufacturing technology andthe pursuit of ultra-efficient productivity.
Market Heading toward Diversification

Customization

Improved performance through transistor integration

OS

CPU* + Memory

Multifunctionality

Communication systems

Mobility systems

Healthcare systems

Robotic systems

AI systems

PC/mobile
systems

Applications increase as manufacturing technologies diversify

Development &Production Group

Corporate Innovation Division

Research and Development for the Future

Moore's Law

16Hyper-mass
Pursuit of ultra-efficient productivity*C PU: Central Processing Unit. A semiconductor chip that serves as the brain of a computer.

Development System
As semiconductor production technology grows more diverse and in order to bring high-value-added products tothe market in a timely fashion, we have built a system that promotes R&D and technological innovation for the
next generations with collaboration between the Development & Production Group and the Business Group.
In addition, we share technology roadmaps spanning multiple generations for the future with our customers,
and by working with relevant divisions across the Company we accelerate the development of equipment withsolutions that anticipate market needs.
Specifically, the Corporate Innovation Division, which is headed by the CEO, along with the development
divisions of the manufacturing sites in Japan and the marketing departments of business units, are leading
efforts to enhance process integration capabilities and promote digital transformation* (DX) using AI
technology. In addition, in January 2022 we established the Digital Transformation Promotion Department tofurther strengthen the promotion of DX.
Furthermore, as demands from society escalate with regard to the environment, health and safety, theGlobal Environment and Safety Council is playing a central role in promoting the review and formulation ofbasic policies, and each of our manufacturing sites in Japan are also building a development system that takes
into account the environment and health and safety.

CEO
Corporate Senior Staff(CSS*)Development & Production 1st Division
Development & Production 2nd Division
Development & Production 3rd DivisionCorporate Production Division* CSS: Composed of the Vice President and General Managers of Tokyo Electron, Presidents from overseas subsidiaries

Shift Left
We are focused on using the Shift Left approach, investing resources such as technology, personnel and expense into
the early processes of product development. Through this approach, we are endeavoring to develop various
technologies and conducting research for multiple future generations in order to realize the technology roadmaps
we have created with customers.
In fiscal year 2022, we continued working on using less space for equipment, which is one thing our customers
require. By optimizing the layout of equipment in cleanrooms, we enhanced the productivity per unit area of
equipment, and also contributed to reducing environmental impact. Furthermore, through activities for E-COMPASS*,
an initiative for building sustainable supply chains, we are also pursuing more efficient product development from anenvironmental perspective in partnership with our suppliers.
Through promoting the Shift Left approach we gain an understanding of customer needs at an earlier stage, and byreflecting the information obtained from feedback into our R&D and proposing superior products, we are contributing
to maximizing yield for customer devices and capacity utilization of their mass production line equipment.
We are also promoting on-site collaboration for early delivery of evaluation equipment to customers’ fabs anddevelopment and research laboratories, and are working to accelerate the process in which R&D is reflected in mass
production equipment as well as to optimize development efficiency.
Shift Left■

Joint development of technology roadmaps spanning multiple generations■

Promotion of early engagement

■

■

■

*

E-COMPASS: Refer to E-COMPASS Initiative on p.46

Maximization of yield for customer devices and equipment operating rate fromearly stages of mass production, and also reduction of environmental impact
Promotion of improvement in work efficiency and per person productivity, andfurther increase in investments into human resources and development
Increase in equipment efficiency per unit area by achieving higher productivity andusing less space

Product Marketing
We are endeavoring to further enhance the productivity of product development by having our sales
departments and product marketing departments appropriately fulfill their respective roles.
Our sales departments are responsible for ensuring that products and services are provided based on solid
relationships of trust with customers.

* Digital transformation:

Refer to Strengthening of Product Competitiveness through Digital Transformation (DX) on p.18 andrefer to Higher Productivity through Digital Transformation (DX) on p.26

TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer ResponsivenessMeanwhile, our product marketing departments work to plan and realize products that meet the futureneeds of customers in target markets, such as development planning to increase the value of products andservices, and the examination of value-adding mechanisms. In conducting these initiatives, in addition toconsidering new products and functions based on the seeds of our development divisions, they also formulate
plans for optimal collaboration including tie-ups with partner companies and consortiums.
Our sales departments and product marketing departments work together in developing product marketing
activities that anticipate market needs and contribute to customers’ products, and in doing so, help improve
our product competitiveness and promote our Shift Left approach.

Higher Productivity

Management Foundation

Consortiums
Tokyo Electron Development Sites

Korea(as of April 1, 2022)■■

Survey & analysis

Responding and adjusting tochanging circumstances■

Projects uniquely plannedby the development
divisions are examined,
commercialized andassessed to see if there isvalue in functionalization

Imec

■

Tokyo Electron Kyushu

EUV and high-NA EUV: Extreme Ultraviolet. Ultraviolet radiation (ultraviolet rays) in the wavelength range of 1 to 100 nm. High-NA EUV refers to nextgeneration EUV.
Refer to Lithography Process on p. 5
BRIDG: Bridging the Innovation Development Gap (BRIDG) provides the physical foundry infrastructure and collaborative process to connect challenges
and opportunities with solutions making commercialization possible.
TEL Technology Center, America: Our R&D center in the U.S.
Front-end/Back-end: In semiconductor device production, the beginning section of the manufacturing process where the device element isformed is called the front-end (FEOL), and the latter section is called the back-end (BEOL) where the wiring is traditionally accomplished.

BRIDG

National Institute of Advanced
Industrial Science and Technology

IME
TaiwanSetting of target market

We have focused on collaborative efforts with domestic and international consortiums and academic institutions(universities) to enhance our R&D capabilities and to create leading-edge technologies for a very long time.
Today, we continue our engagement in a wide range of areas from applications to product development. In the areaof EUV and high-NA EUV1 lithography processes2, this is achieved through collaboration with imec located in Belgium.
Furthermore, we participate in a global research hub for hardware development of next-generation AI in the U.S. stateof New York, and have formed a partnership with BRIDG3, which is a non-profit public-private partnership located in
the U.S. state of Florida, as well. At our research center in TEL Technology Center, America4, advanced R&D in the areasof front-end, back-end5, and advanced packaging process areas are being carried out daily.
Additionally, we collaborate with the National Institute of Advanced Industrial Science and Technology (AIST), one of

SUNY Poly/
NY CREATESTokyo Electron Technology Solutions

CEA-Leti

Target segment &plan setting

Collaboration with Consortiums and Academia

45Tokyo Electron Miyagi

Singapore

Led by product marketing (New products & shared technologies)

2
3

Japan

Belgium

Future needs/seeds analysis* CIP: Continuous Improvement Program1

France(technology and collaboration)

TEL Technology Center, America
TEL Manufacturing andEngineering of America

TEL Magnetic Solutions

Product promotion
Collection of necessary technologicalinformation

Development of new
products/functionsU.S.

TEL Technology Center Korea
Ireland

Led by sales (Expansion of existing products & CIP* technology)

Promotion & hearings

17

Data

Japan's largest public research institutions. There we leverage AIST's world-class research environment and personnel
to enhance our own development by conducting MRAM1 and 2D material-related research. We do this to address theneeds in the field of semiconductor technology development, which is becoming increasingly diverse.
From fiscal year 2022, we are also participating in iSyMs2, an open consortium led by the Tokyo Institute ofTechnology and the University of Tokyo, to broaden the scope of our collaboration. We have also been working with
SRC3, a globally known U.S. consortium, and contributed to the production of the Decadal Plan for Semiconductors4
published in October 2020.

Roles of Sales Departments and Product Marketing for Product Development■

TEL FOR GOOD

TEL Technology Center, Taiwan

12

MRAM: Magneto-resistive Random Access Memory
iSyMs: Industry-University Consortium for Integrated System-Materials

3
4

SRC: Semiconductor Research Corporation. An advanced research and technology consortium active in the semiconductor industry.
The report that explains the potential of semiconductors over the next 10 years and the challenges that must be overcome to realize the vision.

■ Joint Research Selection Program with Academic Institutions

Since 2018, we have been conducting a joint research selection program with academic institutions. The aim is
to discover and collaborate on advanced elemental technology research pertaining to semiconductors. Under
this program, 23 themes have been selected over the past four years, and a variety of joint research projects are
currently underway.
Although applicants are free to propose any research topic, we adopt proposals that (1) meet our technologicalneeds and show original perspectives and ideas only possible in academia and (2) are expected to improve ourtechnical and planning capabilities and contribute to the expansion of our business domain in the future.
Technical advisors selected from our development divisions, business units (BUs) and manufacturing sites inJapan are responsible for selecting the topics, with subsequent joint research activities managed by theadministrative staff. The research period is up to three years but is extendable if valid results are confirmed
during the regular term.
We will continue to promote the selection program in order to contribute to the development ofsemiconductor-related technologies and devices, as well as to the advancement of science and technologies byrevitalizing research activities in academia.
TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer ResponsivenessIntellectual Property Management
We are promoting intellectual property (IP) management based on the fundamental principles that IP
protection supports business activities and leads to an increase of corporate profits.
In order to achieve sustainable growth in the semiconductor industry, where the growth is driven bytechnological innovation, we are globally expanding our R&D activity including industry-academia
collaborations. As well as at corporate headquarters, we have allocated IP professionals at R&D and production
sites around the world to evaluate projects from various angles such as R&D and marketing perspectives, andwe are striving to enhance our competitiveness through building IP portfolios aligned with our technology andproduct strategies.
In 2021, the number of inventions created in Japan was 1,269 and 225 in other countries. The global patentfiling rate has been approximately 70% for 10 consecutive years, and the approval rate of the filed patents hasreached 79% in Japan and 83% in the United States. As proven by these statistics, we maintain our competitive
advantage in the IP domain at the global level. Over the last two years, we have collaborated with partnercompanies and research institutes such as universities around the world and have succeeded in filing 43 joint
patent applications together with 15 companies and 16 organizations.
As a result of these activities, we were selected as one of the "Clarivate Top 100 Global Innovators 2022." In
this award, Clarivate, a global information service company, makes an original evaluation based on patent data,and once a year selects “companies or institutions providing new value to the world with capabilities,
consistency, incredible creativity, and new thinking.”

Higher Productivity

Management Foundation

TEL FOR GOOD

18

Data

using 3D system integration techniques which leverage bonding technology. Also called “heterogeneous
integration4”, 3D system integration technology combines and packages a variety of different materials such as
silicon and non-silicon elements, CPUs and DRAMs5, analog and other electronic components.
In AI technology, development of analog neural devices6 and nonvolatile resistive random access memories7
which mimic the energy-efficient human brain function is well underway. Our film deposition technology
contributes to this development.
By combining and applying these technologies, we will be able to further reduce power consumption andimprove computing efficiencies in a variety of devices.
Realizing next-generation computing requires the development of AI chipsets with an even higher processing
speed and greater energy efficiency. By taking maximum advantage of a wide range of technologies andtechniques from semiconductor production, we are working to create high-value-added equipment that canhelp meet one of the next-generation computing needs of bringing computer performance closer to that of thehuman brain. We are expanding the technological areas in which we can contribute by developing new materials
and boosting the performance of chipsets through 3D system integration equipment offerings, which in turn
optimize the power efficiency of semiconductors by realizing next-generation computing requirements.
We are also working on the development and application of quantum computing technology for the next
generation and beyond.
1
2
3
4
5

SoC: System on a Chip, a design technique in which many or all of the functions required for system operation are mounted on a single semiconductor
chip, or a chip built using this technique.
GPU: Graphics Processing Unit, a dedicated electronic circuit designed to manipulate and modify memory to speed up the generation of images used
for displays.
NPU: Neural network Processing Unit, a processor dedicated to AI that incorporates a neural network that is modeled after the human cranial nervous
system.
Heterogeneous Integration: Packaging that unites different kinds of chips
DRAM: Dynamic Random Access Memory. A type of semiconductor memory used in the main storage unit (or other electronic devices) of a computer
as a large-capacity working memory
Analog neural devices: Electronic devices capable of continuously changing resistance
Nonvolatile Resistive random access memory: Random access memory that uses nonvolatile resistive memory elements.

Tackling Technological Innovation

6
7

Research and Development for Next-Generation Computing

Strengthening of Product Competitiveness through Digital Transformation (DX)

Demand for semiconductors is increasing on a global scale and production is expected to grow even further inthe future. Under such conditions, an unchecked increase in power consumption due to the growing use of
semiconductors may lead to an energy supply risk in the market. In modern-day computing, focus for edge
devices is placed on lower power consumption, but for the server-side the focus is more on performance rather
than power consumption. This is in response to the market needs. Therefore in the future, we may need torethink the balance of Power usage, Performance, Area of silicon, Cost and Environmental impact (PPACE) of
our devices in order to address this energy issue. At Tokyo Electron, we recognize these and other issues and areworking to resolve them through our semiconductor production equipment business.
One solution to the power efficiency problem is to place memory devices closer to logic devices(computational circuits). By shortening the electrical pathway, one can reduce the electrical resistance andthereby reduce power consumption during information transfer between the devices. Optimization of device
architecture using this technique is effective, and development in this area has been gaining momentum inrecent years.
Additionally, for logic devices, SoCs1 that take advantage of the computing characteristics of CPUs, GPUs2 andNPUs3 and distribute computational tasks to the most efficient circuits are increasingly popular. This SoC
architecture can be built by a monolithic process that does not use bonding technology, but can also be built

DX, which is expanding globally across all industries, is accelerating in the semiconductor and flat panel display
production equipment industries as a method to resolve a variety of issues that are becoming more complex
every year.
Yield

Data application and Use
Opportunities

HVM*

C
Ramp up

A S hortening businessprocesses for researchand development

BA* HVM: High Volume Manufacturing

Time

Accelerating the customer proposal
process based on accurate simulations

B S hortening the time to

Reduced mechanical error difference,
automatic adjustment functions

C Improving productivity/

Predictive maintenance, fault detection,
process adjustment functions via
monitoring and analysis functions

mass production

R&D

Examplesproduct yield

TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Having positioned DX as an important part of the solution for the demand for further miniaturization andmulti-layering of semiconductors, we formulated the TEL DX Vision in January 2021 to become “a global
company where all employees drive enterprise value creation sustainably through activities such as value
addition and efficiency improvements by leveraging digital technology.” We will make full use of a variety ofdigital enablers*, aim to resolve high-level problems via a cycle of 1) monitoring, 2) analysis and prediction,3) control and 4) autonomy, and further strengthen the competitiveness of our production equipment.
* Enablers: People, organizations, factors and means that enable success and achievement of objectives

Digital Enablers■■■

Added Value Creation / Improved Capital Efficiency

High-performance computing
Cloud infrastructure
AI technology, IoT, xR*

Surrounding Environment■■

Progress in data sharing andcollaboration in supply chains
High expectations of robots
and AI and support of humans❸ Control

Feedback to
the realworld❶ Monitoring

Achieving Goals■

Issues of a higher dimension

Visualization❹
Autonomy

Issues of a higher dimension

Autonomous
learning anddecision-making■■■

Quality
Cost
Speed

■
■

Productivity
Energyconsumption❷ Analysis and Prediction
Analysis and prediction with digitalized data

* xR: Extended Reality. Collective name for Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR) and Substitutional Reality (SR).

■ Example Initiative

We use AI-based machine learning to adjust film coverage by plasma-enhanced atomic layer deposition(PE-ALD)* in order to ensure film deposition with even thickness around the nanosheet structure. As a resultof using AI to collect experimental data and optimize the analysis and process, we have established an
optimal process for film deposition with high coverage in a short time without damage such as patterncollapse or deformation. Through the use of AI, the amount of wafers and energy used in development isminimized, and engineers are able to engage in high-value-added work without being bound by conventional
ideas and practices.

Higher Productivity

Management Foundation

TEL FOR GOOD

Data

19

Support for Evolving Displays
In recent years, with the development of ICT, newwork options that are not bound by time or place,such as remote work, have expanded. As a result,
there have been dramatic changes in areas such as
lifestyles and health awareness.
Amid this change, displays are expected tocontinue to develop and support people’s daily lives
as an interface between people and data. For
example, organic light emitting diode (OLED) displays
have evolved to be lighter, thinner and with a higher
image quality, and are expected to be used for computers and tablets as well as large screens for televisions
and other devices. The key to this widespread use is the establishment of production technology using large
substrates, and improving technology to control production defects as well as reducing environmental impact
in the manufacturing process are important issues. Larger substrates will contribute to improved production
efficiency and reduced manufacturing costs.
Our product lineup in the flat panel display (FPD) market includes the ImpressioTM and the BetelexTM FPD
etch/ash systems, the ExcelinerTM FPD coater/developer and the EliusTM inkjet printing system for
manufacturing OLED displays.
ImpressioTM and BetelexTM use PICPTM1, a plasma module with improved energy efficiency, reducing power
consumption by up to 20% and achieving precise processing and stability during the mass production process.
In addition, PICPTM Pro, which was released in 2021 and designed for high-definition displays, enables both yield
improvements and mass production stability by reducing the generation of microscopic particles.
The ExcelinerTM, equipped with our original Air Floating Coater, permits higher throughput2 while maintaining
excellent film uniformity and saving chemical consumption.
We will continue contributing to the further development of diverse display products, tackling effective
technological innovation based on market needs such as improving productivity and yield and using energy andmaterials more efficiently.
1
2

PICPTM: A plasma module that produces extremely uniform high-density plasma on panel substrates
Throughput: Processing ability and data transfer amount per unit of time

* Plasma-enhanced atomic layer deposition (PE-ALD): Atomic layer deposition is a thin-film deposition technology that uses continuous vapor-phasechemical reactions. PE-ALD is a method of applying plasma to activate a reaction on the substrate.

Result with engineer-created recipe

Result using machine learning

Pattern collapse/
deformation

No damageExcellent coverage
Lack of coverage

Evaluation
period3 weeks

Evaluation
period
1 day

Source: Tokyo Electron Technology Solutions Limited / Tokyo Electron Limited
Comparison of exploration results of a film coverage process in a simulated nanosheet structure using a 300 mm PE-ALD system, conducted by ahuman engineer and machine learning respectively.

TOKYO ELECTRON SUSTAINABILITY REPORT 2022