Commitment by Top Management

Development of Modern Civilization at theExpense of the Global Environment

4Commitment by Top Management

I am afraid that the global environment is approaching a criticalpoint in recent years. Looking back on our history, humanbeings have been approaching nature in two different ways.
Some pursued sustainable development in harmony with nature
while others just fought against nature. Especially in the modernage, people went to extremes to conquer nature and almost
destroyed it. Particularly in the advanced countries, modern civilization has been developed at the expense of the global environment, and I am afraid that the earth’s capacity to replenish
and repair itself is near its limit.
In turn, the development of modern civilization has, however, forced us to recognize the importance of the environment.
For example, as a result of humankind achieving its dream ofspace flight, it has become possible for us to view the earth
from an objective viewpoint outside the planet, and we are now
widely aware that the earth is vulnerable even to minor risks.
It is becoming increasingly difficult to maintain the global
environment in a stable manner, and so we have no time towaste: we must act rapidly to restore the global environment
using the knowledge we have accumulated as our civilization
has developed and the wisdom cultivated based on our experience of living in harmony with nature.

Providing Environment-Friendly, Cutting-Edge
Manufacturing Process and Semiconductor
Production Equipment in Response to theIncreasing Role of Semiconductors
As a key to restoring the global environment, it is important toencourage the newly industrializing countries (NICs), who areinvolved in improving their economies and the living standardsof their people, to pursue development in a way that will not further damage the environment. The center of semiconductor production is now shifting from the United States and Japan to theAsian region, and it will then shift to the NICs. When thesecountries develop the semiconductor industry in their countries,
it is essential that they incorporate the concept of EHS (environment, health and safety) into their economic development toprotect the environment, and I believe that it is the Tokyo
Electron Group’s mission to provide these countries with environment-friendly and highly economical and productive semiconductor production equipment and technology.
It is also important to ensure the safety of our products. We
will provide our customers with semiconductor production
equipment together with the know-how needed to use theequipment in a safe manner.
We are now entering the era of the ubiquitous network society. In the future, devices utilizing semiconductor technologies
will be more widely used in society, which will improve the efficiency of society and contribute to reducing environmental
impact in its various aspects.
Semiconductor manufacturers are now attributing moreimportance to the design and development of software in orderto manufacture next-generation semiconductors. Society isincreasingly demanding that manufacturers of semiconductor
production equipment and materials take charge of developing
semiconductor manufacturing process technologies.
Tokyo Electron Group will further contribute to the creationof a society where people live in harmony with the global environment by providing environment-friendly, cutting-edge semiconductor manufacturing process technologies.

“As semiconductors and flat panel displays (FPDs)
become part of the social infrastructure, themission of semiconductor production equipment
manufacturers is becoming increasingly important.”
Tetsuro Higashi
Chairman & CEOTokyo Electron Limited

Dramatically Improving the Performance of OurEquipment Will Eventually Contribute to theGrowth of Developing Countries

I participated in the Davos meeting1 in January 2007. Many sessions focusing on global warming were held during the meeting,and I felt strongly that the problem is attracting a great deal ofattention on a global scale. To solve the global warming problem, technology will play the most important role: I believe thatdrastic technological innovation will be necessary in solving theproblem.
As for semiconductors, society expects us to supply semiconductor production equipment that enables semiconductor
manufacturers to produce high-performance and highly environmentally efficient semiconductors at low cost. The semiconductors thus produced and used in electronic devices andautomobiles will contribute to reducing the power consumed
globally, and eventually to the solution of the global warming
problem.
In the future, we intend to actively cooperate with companies whose efforts are contributing to reducing the power society
consumes by providing energy-saving devices such as power
semiconductor devices and solar panels.
One of the fundamental requirements in the development of
more energy-saving semiconductor production equipment inour core business, and one that our deveroppers are now widely
aware of, is that we have to reduce the environmental impact
caused by the equipment while it is in use. Based on this recognition, the design for safety is as important as environment.
It is also important to raise the environmental and safety
standards of the entire industry. At the Davos meeting, I talked
with some top executives of leading semiconductor production
equipment manufacturers from overseas and we agreed on
the necessity of giving active support to SEMI 2 to shareenvironment- and safety-related technologies across the industry.

Semiconductors will play an important role in the growth of theworld’s developing countries. In the IT industry, which focuseson software, you can start up a business with a small investment. Also, a lot of people in developing countries will be able
to learn regardless of distance and time if they use communication devices and technologies based on PCs, which use semiconductors. To this end, I believe it vital that we expand the useof semiconductors.
To achieve these objectives, however, semiconductor prices
need to be reduced substantially, while semiconductor manufacturers, who are our customers, need to make a profit. In support of this, we will make strenuous efforts to improve theperformance of semiconductor production equipment.
I am proud that TEL is part of the semiconductor industry,
which can make a great contribution to society at large in theways I have described here.
1. Davos meeting: Annual meeting of the World Economic Forum held in Davos,
Switzerland, where the world’s corporate managers, politicians, and economists
gather to discuss global politics and economy
2. SEMI: Semiconductor Equipment and Materials International, an international
industrial association of semiconductor/FPD production equipment and materials
manufacturers“We will support our customers indeveloping semiconductors by providingthem with more energy-saving equipment.”

Kiyoshi Sato
President & COO
Tokyo Electron Limited

5Commitment by Top Management

The Mission of Tokyo Electron Group Is toProvide the Equipment to Manufacture HighPerformance Semiconductors Efficiently