Highlight
Kunshan Plant in Jiangsu, China,Starts Operations

Tokyo Electron will contribute to the development of the Chinese panel
display industry by engaging in the production of flat panel display (FPD)
production equipment and maintenance of components in China
Purpose of the establishment of a new plant in China
The Tokyo Electron Group has established a new production
site for its flat panel display (FPD) business in Jiangsu, China.
Previously, we manufactured all FPD production equipment
and service parts in Japan. We decided to break with tradition,
however, and build a new plant in China in order to meet therapidly increasing Chinese demand for production equipment ina more timely manner while improving our cost structure. The
plant consists of two buildings—one for production and one foradministration—with a combined floor area of 28,246 m 2 . In thebeginning, the plant will only undertake periodic maintenance but

will gradually expand operations to include alteration and partial
manufacturing of production equipment. While maintaining theR&D function for differentiating technologies in Japan, we will
make the most of the new plant in China to flexibly respond to theneeds of the quickly expanding Chinese market and enhance ourcompetitive advantage.
By pushing for the plant’s ongoing growth and success,we will contribute to the prosperity of Kunshan City and thedevelopment of the Chinese panel display industry.

TEL Kunshan Plant in Jiangsu, China• Company name : Tokyo Electron (Kunshan) Limited• Location: No.8, Dongguang Road, Kunshan Economic &Technical Development Zone Jiangsu, China• Activities: Manufacture of flat panel display (FPD) production
equipment and maintenance of components• Construction began/completed:January 2011/March 2012
• Floor area: 28,246 m2
About 350 local government officers and Tokyo Electron Group personnel attended the opening ceremony, marking thecompletion of the new plant in a celebratory mood helped along by shishimai (lion dance) and other performances.

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Meeting customers’ requirements in a timely manner

HIGHLIGHT

One of the services provided by the new plant is periodic
maintenance of FPD production equipment. The plant’s
proximity to customers allows us to conduct maintenancein such a way as to meet customer requirements in amore timely manner. The regular and proper maintenanceservice also ensures that our equipment will maintain its
quality and be able to be used by our customers for as
long as possible. The new plant also eliminates the needto transport consumables and spare parts to Japan forrepair, thereby helping reduce the environmental impact of
our logistics.

Manufacturing facilities at the new plant(large processing machines)

Environmental considerations incorporated from the planning stage

RO*1 water treatment room

Synthetic wastewater treatment facility

Pure water production equipment

Liquid chemicals storage tanks

EHS REPORT*1 RO: Reverse osmosis operationMANAGEMENT REPORT

Various environmental considerations, such as the needfor energy and resource saving, were incorporated fromthe planning stage of the new plant. One such example isa system that collects waste heat from various facilities
and reuses it in air-conditioning to save energy. The plantis also equipped with a system that allows us to reuse
surplus water amounting to roughly 2,000 m 3 annuallythat is generated from pure water production as washwater. In addition, the skylights, installed as smoke
vents, let in plenty of outside light to help create a brightwork environment.
With regard to waste liquid containing chemicalsubstances, we not only ensure that its generation isminimized, but also that it is treated carefully and that thelevel of chemical substances contained in wastewater isstrictly controlled before discharge.

SOCIAL REPORTTokyo Electron’s first plant in China
Tokyo Electron (Kunshan) Limited was established as the Tokyo Electron Group’s first plant in China inorder to deliver products to the rapidly growing Chinese market. The first products shipped from the plant
are pieces of FPD production equipment and related service components. Our mission is to enhance thesatisfaction level and win the trust of our 10 FPD manufacturer customers, who between them operate
more than 20 factories.
With various environmental measures incorporated from the planning stage, the new plant is designed
to meet very stringent environmental regulations in China. China is working very hard on environmental
protection and strictly monitors companies’ compliance with national and local regulation standards. The
most demanding regulations are those concerning wastewater and atmospheric emissions. Understanding
this, we have installed anodizing* 2 and thermal spraying facilities at the new plant that offer the highest
standard of treatment quality.
With this new plant, which meets China’s stringent environmental regulations, we aim to win the trustand satisfaction of local customers through Tokyo Electron’s characteristic excellence in QCD (Quality, Costand Delivery).

Yoichi Kurono
President
Tokyo Electron (Kunshan) Limited*2 Anodizing: A process by which aluminum is made more corrosion- and wear-resistant9