Research and development

Product
competitivenessResearch and development for the future
As lifestyles and business models undergo dramatic changes in the era of IoT, it is anticipated that the use of semiconductors
will expand in all industries, and there will be demands for even more advanced technologies. In an age where electronics
are a more familiar part of people’s lives, and there is an ever-growing need for semiconductors, Tokyo Electron (TEL) is
continuously engaged in rigorous discussion regarding new, necessary technologies and TEL’s contribution. TEL Technology
Vision 2030 summarizes these discussions, and is distributed within our company in order to provide information and seek
feedback. In addition, our entire company is committed to research and development in the future.
Increase and growth of semiconductor applications–2020

202X- Expansion of IoT technologies

Cloud server

Smart Manufacturing2030 To the world where people and all thesocieties are linked together

Smart Transport
Diversification

Integration

Smart Health

Medium-term goals

Smart phone

Smart Energy Care

PC

Create strong next generation products
Development system
As the transition to a data society accelerates due to the spread of IoT, AI, and the 5G, demand for semiconductors and flat panel displays
is increasing, as is the requirement for their diversification and high performance. Tokyo Electron promotes leading-edge research anddevelopment to meet the fast-changing demands for technological innovation through product marketing, and provides equipment andservices to meet various applications. We also continuously strive to reduce the environmental impact of our products, factories, and offices. By
providing technology that contributes to the development of devices with even lower power consumption, we endeavor to preserve the global
environment. We will contribute to the further development of industry and society through the timely creation of the best, high-value-added
products with cutting-edge technology, and continuing to provide the best service supporting those products.

Main activities

SDGs initiatives■ Create innovative technologies by promoting innovation, to help
build a sustainable society

Research anddevelopment

Tackling
technologicalinnovation

Environmental
contribution of
products■ Contribute to the reduction of environmental impact on a global
level by providing products and services that are conscious of
the environment■Environmental contribution of products
Medium- and long-term environmental goals, Products that
contribute to a sustainable society, Initiatives for productenvironmental laws and regulations

15

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

Market heading toward diversification

Customization

Moore’s Law

Moore’s Law

Multifunctionalityス

Improved performance through transistor integration■Research and development
Research and development for the future, Development
system, Shift Left, Product marketing, Intellectual property
management, Collaborating with consortiums■Tackling technological innovation
Research and development for next generation computing,
Promoting digital transformation (DX), Addressing
advancements in display

With advances in the performance of semiconductors resulting from miniaturization technology, the emergence of
new devices due to manufacturing technologies capable of accommodating more flexible designs, and the growth of amarket requiring large volumes of devices in step with the development of IoT, the semiconductor market is becoming
increasingly diversified. Consequently, amid the need for diversification in manufacturing technologies, TEL promotes
technology development and technology innovation for the next generations, and has built a system in which its
Development & Production Divisions collaborate with Business Divisions to bring high-value-added products into themarket in a timely fashion.
Led by our Corporate Innovation Division, which was established in 2018, we have also been implementing further
enhancements to our process integration capabilities, such as deposition and etching technologies, based on our widelineup of semiconductor production equipment. In January 2020, we established TEL Manufacturing and Engineering ofAmerica to optimize manufacturing functions in the U.S. region and improve operational efficiency.
We are currently working on utilizing AI to strengthen the development of control software further, and in the testing
phase of the manufacturing process, we have succeeded in reducing the number of wafers used from the usual five lots
to just one lot. AI technologies have also made it possible for us to cut liquid chemical use by about 20%, helping us to use
resources more efficiently.

OS

Communication systems

OS

Mobility systems

CPU+Memory

Industry, innovationand infrastructure

Climate action

Partnerships for the
goals

PC/
mobile systems

CPU+Memory

AI systems

PC/Mobile

Healthcare systems

AI

Robotic systems

Applications increase as manufacturing technologies diversify

Hyper-mass
Pursuit of ultra-efficient productivity

TOKYO ELECTRON SUSTAINABILITY REPORT 202016

Product competitivenessTo increase IP awareness, we continuously educate our engineers, who are the foundation of our R&D strategy, and in
total, around 4,300 engineers have become inventors. Additionally, because we often handle highly confidential information,
including technological information of our customers and collaborative partners, we also focus on confidential information
management education.

Shift Left
TEL is focused on advancing the “Shift Left” approach, investing resources (including technology, personnel, and money)
into the early processes of product development. Together with customers who conduct research with a vision beyond
even the next generation and who aim to accelerate the speed of development further, we have created a technology
road map, and are engaged in developing the various technologies required for its realization.
In fiscal year 2020, responding to the growing customer need for production equipment to take up less space, we
succeeded in improving equipment efficiency per unit area by maximizing the use of clean rooms and providing moreproductive equipment. Through proposals of unique technologies, we promote on-site collaboration for early deliveryof evaluation units at customers’ plants and research and development laboratories, shortening the period between
technology development and the conversion to mass production equipment and maximizing efficiency.
Shift Left

Collaborating with consortiums
By collaborating with international and domestic consortiums, TEL is enhancing its own research and development
capabilities, and is working to further develop cutting-edge technologies. With three bases in Japan and additional basesin the United States, Belgium, and Singapore, we collaborate with device manufacturers in Japan and abroad and with
global research institutes to promote research into next generation semiconductor production technology. In fiscal year
2019, we began participating in a global research hub developing next generation AI hardware, and in fiscal year 2020,
we have been promoting collaboration in technologies and applications that speed up evolution, from development tomarket launch. One example has been our cooperation with BRIDG1, a not-for-profit, public-private partnership located in
the U.S. state of Florida.
Our engagement in these consortiums includes the development of cutting-edge processes for existing devices andthe development of manufacturing technology for chips designed for AI computing.

 Joint development of multi-generation technology road map with customers
 Promotion of early engagement
 Maximization of yield for customer devices and equipment operating rate from early stages of mass production,

and also reduction of environmental impact
 Promotion of improvement in work efficiency and per person productivity, and further increase in investments into

human resources and development
 Increase in equipment efficiency per unit area, by achieving higher productivity and using less space

Consortium
Tokyo Electron development sites

Product marketing
TEL is promoting effective product development by having its sales departments and product marketing departments
appropriately play their respective roles. Our sales departments take the lead in making improvements and adding
functions to existing products that have already been delivered, and provide customer feedback to our development
divisions. Our product marketing departments, meanwhile, take the lead in the development of new products, andshare guidelines based on market trends and competitor analysis with the development divisions resulting in productdevelopment that contributes to value creation for customers. They also consider the commercialization of plans andthe addition of functions proposed by our development divisions, and formulate strategies for collaborating with partnercompanies and consortiums. Through their activities, our product marketing departments are helping to effectively
promote our important “Shift Left” approach.

(as of April 1, 2020)

France

CEA-Leti

Expansion ofexisting products& CIP1 technology

Led by sales

Development of new products/functions• Support for product owners• Progress/cost management ofdevelopment projects• Fine-tuning of responses or proposal
to stop development according tochanging circumstances

New products &sharedtechnologies

Target segment & plan setting• Setting of target market• Setting of development content/plans• Feasibility study

Japan

CNSE
BRIDG

Tokyo Electron Miyagi
Tokyo Electron Technology Solutions
Tokyo Electron Kyushu
Taiwan1
CIP: Continuous
improvement program

Led by productmarketing

In its intellectual property-related activities, TEL’s basic policy is to contribute to increased
corporate revenues by supporting business activities through appropriate protectionof intellectual property (IP). IP personnel assigned at R&D/manufacturing sites andheadquarters assess each project from various angles, including R&D and marketing
Cumulative number ofperspectives, building IP portfolios aligned with technology, and product strategies in an
technology inventors
effort to boost competitiveness. In 2018, in order to uphold our worldwide advantage in2
the IP field, we maintained a global patent application rate of approximately 70% for the
ninth consecutive year, and achieved high patent approval rates (83% in Japan and 86% in
the United States). Furthermore, as we globally expand research and development and industryacademia collaborative initiatives related to our business, the number of joint patent applications in collaboration with partnercompanies, universities, and other research institutes around the world has reached 51 applications with 20 companies and 10
organizations in the last two years.

4,300

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

imec

IME

Intellectual property management

17

Belgium

TEL Technology Center, Taiwan

Survey & analysis• Market trend analysis• Competitor analysis• Device process analysis• Needs/seeds analysis

Projects uniquely planned by thedevelopment division are
examined and commercialized,
and assessed if there is value infunctionalization

U.S.

TEL Technology Center, America

Singapore

Involvement in product development by sales departments and product marketing departments

Promotion & hearings• Product promotion• Collection of next, necessary
technological information• Hearings on competitor trends• Collection of device information

Korea

Tokyo Electron Korea
TEL Technology Center Korea

2
Global patent application
rate: Percentage of
invention applications
filed in multiple countries■AI chip development
In cooperation with partner companies in the United States, TEL is participating in the development of AI chips. The
development system we have built is completely integrated, from the architecture stage examining semiconductor
design for AI systems through to incorporation into circuits and physical design, and from manufacturing through to
research on the materials development level. Besides developing software necessary for AI to work, we are engaged in
the development of materials, processes, and equipment geared for manufacturing, leveraging our partner companies’
knowledge of design and architecture.
■Initiatives in Japan
Responding to societal demands regarding energy and labor, TEL is participating in a project that brings together a groupof advanced companies with the science, engineering, humanities, and social sciences departments of Tohoku University,
Kyoto University, and Yamagata University.
The project defines three specific non-competitive areas, namely: (1) edge computing devices for IoT with extremely low
power consumption, (2) hybrid integrated power devices for high-efficiency energy conversion, and (3) intelligent electronics
systems for highly efficient labor-intensive transportation systems, and carries out research activities designed to create
innovative technologies and build a joint industry-academia platform for the development of human resources. Tohoku
University, the lead organization in these research activities and projects, hopes to contribute to creating new, world-leadingindustries by achieving synergies with its competitive project for a center for industry-academia collaboration.
As for project outcomes, as a consequence of developing new processes and process integration technologies in
the manufacture of spin-transfer torque-magnetoresistive random access memory (STT-MRAM2), in a world first, we
succeeded in achieving both high performance and high rewrite tolerance3 in STT-MRAM, thereby contributing to thepractical implementation of STT-MRAM and helping to expand its areas of application.

1
BRIDG: BRIDG is a
not-for-profit, publicprivate partnershipspecializing in advanced
system integration,
microelectronics
fabrication, III-V
materials deposition for
sensors, optoelectronics,
and high-speedtransistors. BRIDG offers
production process
technologies, researchand development
capabilities, and 200
mm microelectronics
fabrication geared
toward systemminiaturization, device
integration, hardware
security, and productdevelopment key toaerospace/defense andthe IoT/AI revolution.
Supported by OsceolaCounty, University ofCentral Florida, Florida
High Tech Corridor
Council, and others,
BRIDG provides thephysical foundry
infrastructure andcollaborative process
to connect challenges
and opportunities withsolutions; “Bridging theInnovation Development
Gap” making
commercialization
possible.

2
Spin-transfer torquemagnetoresistive
random accessmemory (STT-MRAM):A nonvolatile memory
based on the operating
principle of the tunnel
magnetoresistance(TMR) effect (thephenomenon in whichelectrical resistancechanges dependingon the direction ofmagnetization of two
ferromagnets separated
by a thin insulator ina magnetic tunnel
junction (MTJ) element)using spintronics (theengineering use andapplication of boththe charge and spin ofelectrons in a solid)
3High rewrite tolerance:
Tolerance for an
unlimited number ofdata rewrites

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

18

Product competitivenessTackling technological innovation

Environmental contribution of products

Research and development for next generation computing
As use of the IoT, linking a multitude of devices to the Internet, expands rapidly in society, demand for semiconductors
processing massive amounts of information quickly and efficiently, such as in data collection and management, analysis, andvisualization, is continuing to grow. At the same time, progress is taking place in the development of neuromorphic devices,inspired by human neural circuits. When processing information on computers that use conventional architecture, there
are considerable losses in energy consumption. Such computers used in data centers consume tens of kilowatts of power,
whereas the human brain uses only about 20 W. Similarly, while the operating frequency1 of today’s semiconductor devices
is 5 GHz, the human brain is believed to run at just several tens of hertz. Progress is being made in research and development
on neuromorphic devices modeled on these human brain movements. They utilize synaptic connections2 based on analog
devices to replace the processing and memory functions, which had previously been only divided between the digital
logic and memory of a conventional microprocessor. The aim is to achieve a higher degree of information processing withlow power consumption. These neuromorphic devices require an approach of integrating analog to digital. In addition toconventional pursuit of circuit miniaturization, development is underway for functions that mimic human neural circuits,
including resistive analog neuro device3, and nonvolatile resistive random access memory4. Furthermore, with a focus on
the energy consumed calling memory from arithmetic circuits, much is being done for faster and more energy-efficient
processing capacity by devising a better arrangement of arithmetic circuits and memory.
Leveraging its strengths in deposition and patterning technologies, Tokyo Electron (TEL) has initiated research efforts
into new materials needed for semiconductors that will be the core of next generation computing, such as neuromorphic
devices, quantum computers, logic-memory integration mixing memory with logic (compute-in-memory, memorydriven computing), as well as innovative manufacturing processes for utilizing these materials.

Medium- and long-term environmental goals
1
Operating frequency (orclock speed): The numberof signals per second
to adjust the pace ofprocessing of multiple
electronic circuits
2
Synaptic connections: A
junction formed between
neurons (cells making up
the nervous system ofan animal) regarded ashaving an important rolein learning and memory
3
Resistive analog neurodevice: Electronic devices
capable of continuously

4
Nonvolatile resistive
random access memory:
Random access memorythat uses nonvolatile
resistance transformers

5
Digital transformation:
Digital transformation(DX) refers to theact of utilizing digitaltechnology to transforma product or entire
company while
responding to changes
in society

Addressing advancements in display
As communication devices become more sophisticated and diversein the age of IoT and 5G, higher performance is required for displays
built into those devices. Displays are continuously evolving, in termsof higher image quality, built-in sensors, flexibility of design, and lower
power consumption.
In particular, Organic Light Emitting Diode (OLED) displays, which are used widely in smartphones
and televisions, are expected to expand to various applications including IT and automotive,
because of their high image quality and outstanding design flexibility.
TEL has released EliusTM inkjet printing equipment designed for forming the emitting layer on OLED displays. Elius
can significantly reduce the consumption of materials in the manufacturing process compared with the conventional
evaporation process. It contributes greatly to cut manufacturing costs for medium and large OLED displays. In orderto make the displays compatible with the diverse organic OEL materials that determine their characteristics, TEL isadvancing development that allows swift deployment of cutting-edge knowledge into our device technology.
For the manufacturing process of the thin film transistor (TFT) array, which drives liquid crystal displays (LCD)and OLED displays, we also developed ImpressioTM and BetelexTM plasma etch systems, as well as the ExcelinerTM
coater/developer. Impressio and Betelex use PICPTM 6, a plasma reactor with higher energy efficiency, reduces power
consumption by up to 20%, and achieving precise processing and stability in mass production. Exceliner, equippedwith our original Air Floating Coater, permits higher throughput while maintaining excellent film uniformity and saving
chemical costs.
TEL continues to reduce environmental impact by improving productivity and yield.

19

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

Medium-term goals (2030)
Products

30%

Reduce per-wafer CO2
emission (as compared with 2013)

Facilities

20%

Total CO2
emissions(as compared with 2018)

1%

Reduce year-over-year
energy consumption ateach factory and office(per-unit basis, annual goal)

Long-term goal (2050)
As a leading corporation in environmental management, Tokyo Electron works actively to conserve the global environment.
We strive to contribute to the development of a dream-inspiring society by proactively promoting the reduction ofenvironmental burden of both our products and facilities, and at the same time, providing evolutionary manufacturing
technologies that effectively reduce the power consumption of electronic products.

changing resistance

Promoting digital transformation (DX5)
As the environment for utilizing AI has developed and AI has become a more familiar part of people’s lives, TEL is
expanding the opportunities for AI application, and is continually striving to achieve highly stable equipment operationand greater efficiency in development activities. By monitoring the operating status of semiconductor production
equipment in real-time, and using AI to analyze that data, we aim to improve equipment operation efficiency and to use
resources more efficiently, such as maintenance of equipment performance, achieving wafer process uniformity, cutting
down on test wafers, and avoiding unexpected downtime. TEL’s specialized AI department, launched in 2017, plays a
key role in the development of algorithms and other projects to use AI to analyze the vast volumes of data output fromequipment. Since 2018, we have also been promoting DX across our entire company, not just in development activities
but also in the education of personnel who can utilize digital technology. AI workshops, for instance, have been held toshare the latest technology trends and to boost internal collaboration.

Tokyo Electron (TEL) is working toward the conservation of the global environment by upholding the environment
related medium- to long-term goals detailed the below.

6
PICPTM: Original plasma
reactor developed by
TEL which produces
extremely uniform highdensity plasma on panel
substrates

Products that contribute to a sustainable society
Reduction in CO2 emissions for products
Of the total CO2 emissions from TEL’s value chain, emissions during(%)
product use account for 90%. For this reason, TEL has made it a key
18
16
corporate objective to promote environmentally friendly product16
14
design, and lower the energy consumption of its products. In fiscal
14
year 2020, we set a medium-term environmental goal for the key
121010models of each business unit (BU), namely, to reduce per-wafer
8
CO2 emissions by 30% by fiscal year 2031 (compared with fiscal year2014). Furthermore, in order to achieve this medium-term goal, we
0
(FY)
2020
2018
2019
set an interim goal of reducing per-wafer CO2 emissions for the keymodels of each BU by 20% by fiscal year 2025 (compared with fiscal
year 2014), and we have been promoting specific activities. In fiscal year 2020, we formulated a roadmap for achieving
this goal for our key models, and we established guidelines for calculating CO2 emissions, incorporating the usualenergy and water usage, as well as process gas and chemical substance usage, product footprint, volume, and weight,
reduced frequency of parts maintenance and increased lifespan, and shorter time to equipment launch. Based on theseguidelines, the reduction in CO2 emissions for equipment shipped in fiscal year 2020 in comparison to baseline equipment
was calculated as 16%. We also began examining environmental technology strategies for achieving our medium- andlong-term environmental goals. As we work to further raise environmental awareness, we will continue to incorporate
environmental technologies as an important added value in our technological strategies. We will continue to promotefurther activities for achieving our medium- and long-term environmental goals.

Initiatives for product environmental laws and regulations
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 is that we
properly investigate and disclose information on the presence of any chemical substances in articles. In terms of theformat used for our investigations, we previously used the Article Information Sheet (AIS) format promoted by the Joint
Article Management Promotion-consortium (JAMP2), but since fiscal year 2021, in order to address chemical substanceregulations for concentrations in the parts per billion (ppb3), we have adopted the chemSHERPA4 format, which will
become widespread as the industry/international standard. As for efforts for GHS5 requirements, we provide safety
data sheets (SDS6) when selling chemical products, and we promote the local procurement of chemical products. In
explaining and addressing the frequently revised environmental laws and regulations, we continue to offer “web-based
training for Product Environment Compliance” to all employees, and we provide suppliers with information on therelevant environmental laws and regulations. TEL will continue to rapidly monitor each country’s environmental laws andregulations and strive to take appropriate action.

1
EU REACH: An EU
regulation pertaining
to the Registration,
Evaluation,
Authorization, andrestriction of CHemicals
2
JAMP: Joint Article
Management
Promotion-consortium
3
ppb: One part per billion(1 × 10-9)
4chemSHERPA: A data
entry support tool for
appropriately managing
information on chemical
substances in products
across an entire supply
chain
5
GHS: Globally
Harmonized Systemof classification andLabelling of Chemicals
6
SDS: Safety Data Sheet(Safety Data Sheetrefers to the document
containing hazard
information aboutchemical substancesthat is issued whena company transfers
or provides chemical
substances, products
containing chemical
substances, to anothercompany.)

TOKYO ELECTRON SUSTAINABILITY REPORT 202020