Highlight

TEL’s Global Business Presence

Providing Customers around the World with Superior
Quality Products and Services using Our Global Network

The Tokyo Electron Group has established a global businessstructure in which its production and service bases arelocated in key countries and regions that use large volumesof wafers for semiconductor manufacturing, including
Japan, the United States, Europe, South Korea, Taiwan,
China and Southeast Asia.

The TEL Group’s Primary Business Locations
Sales and Customer Service / Field Services
R&D / Manufacturing / Technology
Parts Center

A Surefooted Global Operating Structure
TEL’s Global NetworkAs one of the world’s foremost suppliers of semiconductor production
equipment, TEL engages in a wide range of business activities including
development, manufacturing and sales. We have also applied our extensive
technological background in semiconductor production equipment to theQ Fiscal 2011 Semiconductor Production
Equipment Net Sales by Region (Consolidated)
Southeast Asia and elsewhere
China
6%5%

Japan
17%

flat panel display (FPD) production equipment segment. Many of thesemiconductor and FPD production machines we manufacture havecaptured a major share in the global market. Our global network consistingof approximately 85 locations in 12 countries spread across the UnitedStates, Europe and Asia enables us to provide superior quality products
and services to customers around the world.
Q Fiscal 2011 Net Sales by Region (Consolidated)

Japan
27%
Consolidated
Net Sales
668.7 billion yen

Overseas73%

China,Southeast Asia,
Northand elsewhere America
21%
16%Europe6%
TaiwanSouthKorea
35%
22%

Taiwan29%

North
America
20%
SouthKorea
17%

6%EuropeQ Fiscal 2011 FPD/PV 1 Production
Equipment Net Sales by Region (Consolidated)

China
22%

Japan
22%

Taiwan28%

South Korea
28%1 PV : Photovoltaic cell

6Technologies Award at SEMICON West held in San Francisco,

TEL was selected as one of the Global 100 Most Sustainable

was presented with an official commendation from SEMI.2

California. Although not selected as the winner, the TEL Group

Corporations in the World on January 29, 2011. The Global 100

The Sustainable Technologies Award recognizes a piece ofis a list of corporations compiled jointly by Canadian publishingequipment, material or service that has a minimal impact on thecompany Corporate Knights Inc. and its partners. The listenvironment andrecognizes businesses for their sustainability, based on ancontributes to a sustainableevaluation of their initiatives for the environment, society andsociety. The EXPEDIUS+

corporate governance.

was recognized for its

TEL received high marks for its

reduction of both water

reduction of greenhouse gas emissions,used in the cleaningenergy consumption and water usage.

process, and volatileorganic compounds

TEL’s Cleaning System Selected asAward Finalist for Its Reduced
Environmental Impact

produced by the isopropyl

Sustainable Technologies
Award finalist commendation

alcohol cleaning agent.

was chosen as one of five finalists for the SustainableEHS REPORT2 SEMI: Semiconductor Equipment and Materials International is a global tradeassociation representing manufacturers of semiconductor and FPD production
equipment as well as raw materials.

In July 2010 the TEL Group’s EXPEDIUSTM+ cleaning system

MANAGEMENT REPORTTEL Included in the Global 100 List of
Sustainable Corporations

HIGHLIGHT

Globally Recognized Environmental Initiatives

The Key to Growth is Greater R&D

external research and development organization in Belgium. We

Recognizing that bringing new high value-added products toare also working to build a structure where our R&D offices aremarkets in a timely fashion is key to unlocking its growth

located close to our customers in order to position us to respondpotential, TEL is actively committed to strengthening its research

promptly to their needs from early in the development stage.

and development activities. In addition to the R&D divisions at
each of our plants in Japan, we also carry out R&D activities at

SOCIAL REPORTTEL’s Global Approach to R&D

Q Capital Expenditures and R&D Expenses

the Leading-Edge Process Development Centerin Yamanashi Prefecture and the Tokyo Electron
Technology Development Institute, Inc. inMiyagi Prefecture. Further, we are moving to(Billion yen)
1,000

750

expand our development activities outside ofJapan. TEL is actively working to develop new(Billion yen)
500

R&D Expenses

66

60.9

7970.5

establishing the TEL Technology Center,America, LLC in New York State, and throughstrengthening our partnership with IMEC, an

45
39.1

300

54

500
200

next-generation technologies and businesses ina wide range of fields through initiatives such as

Capital Expenditures

400

250

22.7
18.1

14.9

10002008

20092010

2011

2012 (FY)(Projected)

02008

20092010

2011

2012 (FY)(Projected)TOPICSConducting R&D in Closer Proximity to Our Customers
We are conducting R&D in locations closer to customers as part of our management policy toprovide the best solutions to match the needs of our customers. As part of this approach, weestablished the TEL Technology Center, Taiwan in the city of Hsinchu. In 2012, we are planning toopen semiconductor process technology centers in South Korea as well as Tsukuba City in Ibaraki
TEL Technology Center,Taiwan

Prefecture, Japan. Moving forward, we will continue to take measures that enable us to produce, aswell as bring to market, new and competitive products.
7