About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Higher Productivity

Management Foundation

TEL FOR GOOD

Data

Customer
Responsiveness20

Solutions that Create
Value for Customers

P. 21

Initiatives for Field
SolutionsP. 21

Ensuring Safety for
Customers

P. 23

Improvement of
Customer Satisfaction

P. 24

SDGs Initiatives
■

■

■

■

■

■

■

■

■

Contribute to customers that manufacture cutting-edge devices by maintaining an accurate and timely grasp on customer needs andproviding innovative technologies for future generations■

Contribute to customer innovation and value
creation through the proposal of optimal
solutions and innovative technologies
Diversify industries and create added value for
products
Improve resource use efficiency and expand theintroduction of clean and environmentallyfriendly technologies

Ensure sustainable forms of production andconsumption throughout product life cycles byconsidering safety and the environment
Support the stable operation of various
generations of equipment while further
improving productivity and promoting reuse andrecycling
Prevent waste generation, and reduce waste byreusing and recycling

Propose optimal solutions that contribute to value creation for customers as a production equipment company with a diverse product range
Make full use of state-of-the-art AI and digital technologies and provide high-value-added maintenance service that support the stable
operation of equipment
Continuously develop the PDCA cycle to further enhance customer satisfaction, a key management theme since our founding■

Build strong relationships of trust by
strengthening global partnerships withcustomers
TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Solutions that Create Value for Customers
Systems for Creating Value for Customers

In fiscal year 2022, amid ongoing travel restrictions and other measures due to COVID-19, the transition toward adata-driven society advanced even further and the semiconductor market reached its largest scale ever. As a result,the semiconductor production equipment market, in which Tokyo Electron participates, also grew significantly. In
conjunction with this growth, we received more requests and inquiries from customers than ever before.
Our Account Sales Division is promoting new technology development to meet the needs for nextgeneration leading-edge technology in fields such as memory, logic and foundry. In addition, the Global Sales
Division responds to the needs of more than 100 customers in Japan and overseas who deal incommunication devices, image sensors, power devices and other products for the rapidly growing Chinese
market, and the industrial IoT market.
These two divisions cooperate with business units and global sites that deal in equipment and respond torequests for not only leading-edge devices but also essentially all device applications. As well, they help
customers with issue resolution and value creation by providing optimal solutions with an eye to the future.
In addition, we have been working to strengthen the front-line functions that connect our customers' sites
and our Company in order to accurately grasp the issues and requirements of our customers in their productdevelopment and manufacturing operations, and provide this as feedback to our main development andmanufacturing sites in a timely manner. Going forward, we will accelerate R&D by carefully confirming andadjusting long-term technology roadmaps, including key technologies, with customers. Furthermore, we willassign highly skilled customer engineers to our customers' sites and work to improve equipment utilization
rates and understanding of the customers’ potential needs.
In addition, we are working to improve the technical skills and interpersonal skills of our more than 4,700
field engineers worldwide, install equipment at overseas subsidiaries and enhance information sharing andin-house coordination related to improving work efficiency using the work-time management system in orderto further improve product quality and stability in our service and support activities. We aim to provide
customers with high-value-added services by utilizing our wealth of knowledge and systems to propose
customized solutions for the various challenges they face.

Proposing Customer Solutions Leveraging a Broad Portfolio of Products
We are practicing product development initiated from the customer perspective in order to meet the needs ofproduction sites, such as improved yield and improved equipment efficiency per-unit area through enhanced
productivity and smaller footprints. Each division works in close collaboration with one another, such as our AccountSales Division, which identifies customer demands for next-generation technology and beyond, and our Corporate
Innovation Division, which reviews the integration of those demands into products.
In addition to developing leading-edge technologies, we are also continuously improving the performance of ourmass production equipment, so that we can proactively respond fast and suitably to the needs of our customers
spanning multiple generations.

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Management Foundation

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In proposing solutions to customers, we leverage abroad portfolio of products, including those used in the Cleaningseries of each patterning process requiring advanced
technological capabilities, such as Deposition, Coater/
Developer, Etch and Cleaning. By providing not only
manufacturing equipment but also optimal solutions
including systems and software, we will support ourcustomers in their pursuit of productivity and quality
improvement in semiconductor manufacturing, thereby
helping them to optimize their manufacturing
Etch
processes and enhance their competitiveness.

21

Data

TELINDY
PLUS™

EXPEDIUSTM-

Deposition
Trias +TM

CELLESTATM-

NT333TM
EXIMTM

EpisodeTM UL

TactrasTM

CLEAN TRACKTM
LITHIUS ProTM Z

Coater/Developer

Initiatives for Field Solutions
Field Solutions BusinessAs demand for semiconductors increases in various fields, such as medicine, finance, transportation andmanufacturing, the miniaturization and integration of CPUs and memory devices to achieve higher
performance is further advancing. To meet this demand, it is becoming an extremely important issue for ourcustomers to improve the utilization rate of their equipment.
At Tokyo Electron, we are striving to further enhance our field solutions business by promoting knowledge
management in field service, continuously improving the skills of field engineers and strengthening our global
support system through the Total Support Centers (TSCs)* to ensure that the equipment we ship will operate
stably in the market for a long period of time.
Furthermore, in order to comply with various regulations, such as overseas travel restrictions due to
COVID-19, we are developing remote maintenance support and educational tools, and are striving to develop ahigh-value-added field solutions business that contributes to our customers' business operations.
*

TSC: Total Support Center. Refer to p. 22

TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

Higher Productivity

Management Foundation

TEL FOR GOOD

22

Data

Initiatives to Reduce Environmental Impact

Knowledge Management

In order to meet the needs of customers producing IoT-related products, etc., we are developing andproducing a new reengineered equipment based on the previous generation of 200 mm wafer-compatible
equipment. The reengineered equipment replaces old units and components with new ones while
maintaining compatibility with existing processes, and achieves the same level of performance as the latest
equipment in terms of transfer and other aspects, thereby helping customers improve productivity andreduce their environmental impact.
As part of our efforts to reduce environmental impact, we are also deploying LEAP*, a support service that
extends the life cycle of our equipment.
Support for semiconductor production equipment, which consists of tens of thousands of parts, typicallyends seven to eight years after discontinuation. The main reason for this is due to the discontinuation of partsor the difficulty in maintaining safety and quality. This has led to the promotion of replacement with newer
equipment and the discarding of older equipment. In response to customer needs and in consideration of theSDGs, we began redesigning discontinued parts, and by strengthening and restructuring our support system,
including repairs, we are now able to provide extended life cycle support for equipment to more than 15 years
after discontinuation. Through these new support services, we are working to reduce equipment disposal andcontribute to the continuous use of equipment over a long period of time.

We promote knowledge management1 throughout the entire Group so that it can deliver high-quality technicalservice swiftly. In the area of field service, we have built Service CRM2 so that we can create a database andcentrally manage customer equipment support and trouble histories. Operation of Service CRM has begun inJapan and is currently being rolled out globally.
Our knowledge management tools allow comprehensive searches of equipment history of multiple systems
to be performed, thereby contributing toward shortening response time when there are problems. Equipment
Records is a tool that allows batch searches of information such as equipment work histories and parts
replacement histories based on equipment serial numbers, while Knowledge Search enables users to enter
keywords of equipment-related problems to carry out batch searches of files and documents saved in the
database based on past trouble information.
In fiscal year 2022, we worked on making the equipment database multilingual to support Korean andChinese in addition to Japanese and English. This enables our global active field engineers to utilize theknowledge management tools with greater effectiveness. We will continue to promote efforts to manage thevarious systems throughout the entire Group using One Platform3 to increase work efficiency and strive tofurther improve our customer responsiveness.

* LEAP: Lifecycle Extension and Availability Program

Knowledge Management Tools

Equipment Records
Comprehensive
Search ofEquipment History Serial
Number Axis

Total Support Center
Total Support Centers
We established Total
Support Centers (TSCs) inJapan, the United States,
China and Europe tosupport overseas
companies through ourglobal network centeredSupport from a global network of TSCs
around Japan.
At each TSC, dedicatedrepresentatives maintainand utilize a database of
information about
customers’ equipment andexamples of similar incidents to strive for better support, and at the same time, conduct remote support service
by operating TELeMetricsTM and other systems. In fiscal year 2022, we continued to establish a system where
TSCs around the world support each other, taking advantage of time differences in each region, and strove tostrengthen our global network. Through these initiatives, we respond to inquiries and problems from customers
around the world with even greater speed and precision.

Knowledge SearchMulti-equipment Database

Comprehensive
Search ofTrouble Information

Equipment History Trouble Axis

WisdomService CRM

BKM

Parts Order History

Best Known Method
Trouble Shooting
ManualOverseas Report
Serial Number Search

123Symptom Search

Knowledge management: Management approach to promote internal company sharing of tacit knowledge held by individuals, in order to encourage innovation andto improve overall productivity
Service CRM: Service Customer Relationship Management
One Platform: An initiative to manage information using a standardized database and system.
Refer to Continuous Improvement of Business Operations on p. 26

TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer ResponsivenessRemote Support System
We promote remote support service using
TELeMetricsTM to minimize any downtime of
production equipment, to detect abnormal operation
before any major defect occurs and to support thestable operation of equipment.
In addition, with the growing need to support
on-site field engineers remotely due to travel
restrictions and various regulations around the world
arising from the COVID-19 pandemic, we are
Using smart glasses (image)developing an advanced remote support system. Thissystem not only allows audio and video from acustomer’s manufacturing site to be shared in realtime but also enhances the confidentiality of information.
In fiscal year 2022, we added unique functions such as information protection, restricted image transmission
and phone translation to our existing smart glasses* system to make remote support more convenient. At thesame time, we are striving to further improve support quality, such as adding the option of tablet devices
according to the environment of our customers.
Unique Features Added by Tokyo Electron
Information Protection

Restricted Image Transmission

Phone Translation

Security feature for protecting
information in case of loss or theft

Information security feature
whereby only necessary images are
sent

Feature that converts voice to text
and displays a translation(multilingual support)

Dangerous Area Function
Function that warns the wearer
when approaching a preset
dangerous area

* Smart glasses: Worn like an ordinary pair of glasses, smart glasses can display images and digital information through the glasses

Engineer’s Skill Up
In fiscal year 2019, we established our training operations center to enhance the training structure and promote
globalization of field engineers. The center establishes a company-wide common skills management systemthat meets the standards of SEMATECH (a U.S. consortium for the joint development of semiconductors). The
system helps us to deploy the most suitable human resources to provide customers with service based on an
objective measurement of the skills of our engineers.
In fiscal year 2021, we began providing education for expert engineers to improve the skills of engineers at
our overseas subsidiaries. The education includes training programs that enable technical support engineersfrom overseas to learn not only technical support but also acquire advanced skills related to development in apractical manner at our manufacturing sites in Japan. Furthermore, we also conduct training for field engineers

Higher Productivity

Management Foundation

TEL FOR GOOD

Data

23

of our Global Data Engineering Team, established in fiscal year 2021, to develop data analysts specializing indigital transformation (DX)*.
In fiscal year 2022, field engineers who have acquired DX skills developed a program for the continuous
improvement of business operations and are rolling it out globally. By linking this program to the field
information database, it became possible to automatically update, analyze and visualize field information.
* 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

Ensuring Safety for Customers
Providing Information to Customers

Tokyo Electron is committed to providing sufficient safety information on its products so that customers cansafely use them.
All products purchased by customers come with a TEL Safety andEnvironmental Guidelines manual. The manual describes examples of potential
risks associated with using our products together with the methods for averting
those risks, as well as safety measures applied to products and recommended
methods for product disposal. It is divided into such categories as chemical,
electrical, mechanical and ergonomic, and is available in 12 languages* to ensurethat customers around the world can understand the content accurately.
In addition to this manual, customers are also provided product-specificmanuals tailored to the relevant product specifications.
If new safety warnings are identified after the product ships, we promptly
TEL Safety and Environmental
report to the affected customers. In addition, we also strive to ensure that
Guidelines
necessary information is communicated, particularly for customers to whom wedeliver products that involve the use of hazardous chemicals or high-voltage electricity.
* 12 languages: Japanese, English, German, French, Italian, Dutch, Russian, Portuguese, Korean, Traditional Chinese, Simplified Chinese and Finnish

Global Expansion of Training for Customers
We establish training centers all over the world, mainly at our development and production sites, and provide
customers with training on equipment operation and maintenance so that products can be used safely. In fiscal
year 2022, demand for web-based training (WBT) and remote training* increased as a result of continuing
difficulty in holding equipment training on-site because of COVID-19. Under such a situation, we provide remotetraining for much of our equipment and strive to further enhance training content, such as by filming footage
from easy-to-see angles beforehand and using some of them as video content. In addition, we are working to* Remote training: A training course, although remote, where trainees interact with the instructor in real time while viewing actual equipment through theirmonitors

TOKYO ELECTRON SUSTAINABILITY REPORT 2022

About Tokyo Electron

Sustainability Management

Product Competitiveness

Customer Responsiveness

improve the content and quality of not only remote training but also WBT by sharing the equipment and methods
we introduced with each training center.
Furthermore, taking into consideration the difficulty in overseas travel, we are also expanding our equipment lineup
at the training centers of our overseas companies.
Going forward, we will continue to give priority to customer safety as we promote further development of ourtraining environment.

Safe Design of Equipment
Taking the entire product life cycle into consideration, we carry out product risk assessments as early as possible inthe development phase. We implement safe equipment design1 to reduce the risks posed to humans by
incorporating the assessment results in the design.
We conduct global surveys of increasingly strict laws and regulations and conduct compliance checks throughthird-party assessment bodies to ensure conformity with international safety standards, SEMI S22 and CE marking3on the equipment we ship.
We have also established a system to comply with safety regulations of the regions where our equipment isdelivered while working with overseas companies.
1
2

3

Safe equipment design: A design concept that eliminates the cause of the machine's harm to humans through the safe design of the machine
SEMI S2: A set of environmental, health and safety guidelines for semiconductor production equipment. It is used mainly by the leading manufacturers ofsemiconductor equipment in the United States and Europe, not only for semiconductors but also as safe procurement guidelines for electric and electronic
device manufacturing equipment around the world.
CE marking: When exporting into the European Union (EU), CE marking defines rules for displaying a CE mark as proof that the equipment is safe andcomplies with EU-defined rules (directives)

Higher Productivity

Management Foundation

TEL FOR GOOD

Data

24

service, for improvement at the level of practical business operations.
Improvements are also made continuously to all aspects of the survey method, including the questions
asked, the analytical methods used and the overall operation of the survey activities.
In fiscal year 2022, two additional questions were added to the existing TEL CS Survey, and the survey was
conducted as Advanced CS Survey in order to analyze the results from a new perspective. Approximately 1,400
individual customers (76.1% response rate) responded to the survey, giving an average score of three or higher(“Very Satisfied” or “Satisfied”) for all survey questions*. The percentage of respondents who gave evaluationsof “Very Satisfied” or “Satisfied,” which is our annual sustainability goal, improved by 3.3 points from 96.7% in
fiscal year 2021 to 100%. On the other hand, we are promoting Shift Left, which is an early-stage improvement
initiative, such as promptly responding to customers who gave a score of 1 ”Very Dissatisfied.”
We will continue to work as one company-wide on activities through the CSSP so that we can continue toachieve our annual sustainability goals.
* For each question, average score is calculated for all customers who responded

Improvement Example
In the TEL CS Survey conducted in fiscal year 2018, many requests for improvements to the software were
made. Since then, the System Software Innovation Division has focused on surveying and analyzing related
questions and sharing the results with related parties in an ongoing effort to resolve issues for each product.
PDCA activities are conducted to exchange opinions across products, study improvement measures, and reporton progress.
As a result of our sincere efforts to incorporate customer feedback by introducing development support
tools, improving development simulators, setting various KPIs related to business progress and implementing
improvement plans such as measurement, we were able to achieve over three points on all software-related
questions in the fiscal year 2022 survey, which is our annual sustainability goal.
PDCA Cycle

Improvement of Customer Satisfaction
Customer Satisfaction Survey

Tokyo Electron conducts its own Customer Satisfaction Survey (TEL CS Survey) every year with the goal of
making continual improvements based on customer feedbacks.
Percentage of responses
The survey started in fiscal year 2004, aimed at just athat indicated Satisfied orlimited number of divisions. It was expanded to include all
Very Satisfied
semiconductor production equipment divisions in fiscal
year 2014, and later the flat panel display production
equipment division and overseas subsidiaries in fiscal year
2016. Currently, it is implemented company-wide as a partof the Customer Satisfaction Survey Program (CSSP).
In the CSSP, a survey with specific questions is conducted at the same time each year, and the information
obtained from the survey is analyzed by business unit (product), account (customer) and function (software,development, etc.), and the results are shared with relevant divisions, such as sales, equipment/plants andCS Survey activity
preparation

Conduct surveyof customers

100%

Feedback to customers
Implement improvement
activities in each division
Confirm progress ofimprovement activities

Analyze and reportsurvey results
Investigate improvement plan

TOKYO ELECTRON SUSTAINABILITY REPORT 2022