H IG H L I G H T ⅡMANAGEMENT REPORTHIGHLIGHT

Development of PV Production
Equipment Business

Development of PV Production Equipment BusinessTokyo Electron is strengthening its PV production equipment business as the new pillar of its
business strategy, thereby contributing to the creation of a low-carbon society.

The Tokyo Electron Group and its PV Production
Equipment Business
Solving the problem of climate change and global warming is
one of the most pressing tasks for humanity today. We needto shift from being dependent on fossil fuels to becoming alow-carbon society by utilizing renewable energy. Renewableenergy is expected to make a significant contribution to theprevention of global warming because it can be used almost
perpetually, while emitting fewer greenhouse gases thancurrent mainstream energy sources. PV power generation
using solar energy is the leading type of such renewableenergy. However, in order for this green energy to come into
common use, further technological innovation and cost
reduction are necessary to overcome the current challenges
related to cost and efficiency, such as increasing theefficiency of converting solar energy to electricity andovercoming the shortage of materials to produce relatedequipment.
The Tokyo Electron Group set up a joint venturecompany with Sharp Corporation (Sharp) in February 2008
to begin cooperative development of plasma CVD systems
for use in thin film silicon PV cells. In February 2009, we also
entered an exclusive sales representative agreement withOerlikon Solar Ltd. (Oerlikon Solar)* for end-to-end thin-film
silicon PV production line and equipment in the regions ofAsia and Oceania. The Tokyo Electron Group is also engaging
in its own independent development of technology. Based on
our belief that we must employ technology to tackle
environmental issues, we are striving to make the PV
production equipment business the third pillar of our Group,
following the semiconductor manufacturing equipment andFPD production equipment businesses.

Sales Representative Agreement with Oerlikon
Solar for PV Production Equipment
Tokyo Electron entered into an exclusive sales representative
agreement for end-to-end thin-film silicon PV production
equipment in the regions of Asia and Oceania, and began thesales and support of the end-to-end thin-film silicon PV
production line and equipment.
PV is now the focus of attention as a solution to current
issues related to the environment and energy conservation.
In the future, the PV market is expected to expand globally.
The Asian market, in particular, can expect the largest
growth.
We are determined to provide our customers with theequipment and support they need through our partnershipwith Oerlikon Solar, the world’s top manufacturer of end-toend thin-film silicon PV production lines, and by utilizing ourstrengths in terms of technology and service support.

Oerlikon Solar’s KAI PECVD system boasts of outstanding processing
capability and operation time.

EHS REPORT*Oerlikon Solar Ltd.：One of the world’s top manufacturers of end-to-end thinfilm silicon PV production lines and equipment. Oerlikon Solar equipment has
manufactured more than 800,000 thin-film silicon PV panels around the world.
Oerlikon Solar is known for its outstanding, reliable performance. Oerlikon
Solar’s end-to-end production line of thin-film silicon PV provides its customers
with the shortest delivery time and the most appropriate PV production capacity.

Strengthening the PV production equipment
business
Tokyo Electron’s business expansion

SOCIAL REPORT

Joint development with Sharp• Plasma CVD systems for use in thin-film
silicon PV cells• Tokyo Electron: Joint development,manufacturing, and sales
Collaboration with Oerlikon Solar• End-to-end production line for thin-film
silicon PV cells• Tokyo Electron: Sales representatives in Asiaand Oceania
Independent development by TokyoElectron

8TOKYO ELECTRON Environmental and Social Report 2009

Oerlikon Solar’s Fab 1200 is a complete end-to-end PV production line

Development of PV Production
Equipment Business

Jeannine Sargent

Senior Vice President
General Manager, PVE BU
FPD/PVE DivisionTokyo Electron Ltd.

CEOOerlikon Solar Ltd.

We are striving to contribute to a low
carbon society by strengthening our PV
production equipment business, while
delivering new technical innovation.

Join Forces for a Bright Solar Future
Oerlikon Solar’s mission is to make solar power an
economically viable alternative to conventional sources ofelectricity. In order to reach this goal in the near future, allR&D efforts are being dedicated to raising efficiencies whiledriving down the production costs of thin film silicon solar
PV modules. Identifying partners that offer synergies andjoining forces is one of the mayor keys to achieving thisgoal.
In Tokyo Electron we have found such a partner!
Our partnership is based on TEL’s extensive sales andcustomer support network in various geographies,
semiconductor experience and highly respected market
leadership; and on Oerlikon Solar’s proven, industry-leading
PV technology. This strategic cooperation is creating a newsolar powerhouse, unlocking the enormous potential of theAsian solar PV market. By forming this cooperation withTEL, Oerlikon Solar will be able to provide its customers withoutstanding equipment and support, while drawing upon theknowledge and technology acquired in the semiconductorand FPD production equipment markets. Together, TEL andOerlikon will promote and expand the adoption of thin film
silicon PV technology in Asia, Oceania and Japan, areas
which are already leading in solar adoption and export.
While the viability of Oerlikon Solar’s equipment andend-to-end solutions receive growing attention from
customers around the globe, potential high growth markets
such as Japan, Taiwan or Korea are showing enormousinterest in Oerlikon Solar’s leading edge technology. Thesemarkets can be precisely addressed by such a well respectedcompany as TEL. The global footprint of TEL’s sales andcustomer support teams provide a platform for thesubstantial growth of Oerlikon Solar’s leading thin film
silicon solar PV technology, leading to a win-win situation
for both companies.
Both companies are well positioned for the growth of
this industry. With this strategic partnership we arereinforcing our regional sales and customer service
structures, and providing TEL with leading-edge PV module
production technology.

EHS REPORTSOCIAL REPORTTOKYO ELECTRON Environmental and Social Report 2009

MANAGEMENT REPORTThe PV business is still in its initial development stage and abusiness model has yet to be built. In the PV businessmarket, where various companies are creating newtechnologies, we have focused on the thin film silicon PV,
for which technical innovation is expected that will ensurestable supply in the future while reducing costs andimproving conversion efficiency. Tokyo Electron signed an
exclusive sales representative agreement in February 2009
with the Switzerland-based company Oerlikon Solar for thinfilm silicon PV production equipment in the regions of Asiaand Oceania. The company has sophisticated technology forPV development and processing. We believe that thispartnership with Oerlikon Solar, the top maker of thin-film
silicon PV production equipment, will enhance our global
competitiveness.
In forming an alliance with Oerlikon Solar, we recruitedengineers and sales people within our company. As a result,
we were able to draw together employees that were highly
motivated and proud to work for a new business directlyrelated to the environment. The expectations within ourcompany towards the new business are high; and we havealready begun to receive orders, providing us with a greater
understanding of the demand in Japan and other parts ofAsia.
Moving forward, we will try to achieve a low carbon
society by providing the highest quality products andservices, while drawing on the sophisticated technologies of
Oerlikon Solar and the unique know-how and technologies ofTokyo Electron’s equipment businesses.

HIGHLIGHT

Takashi Ito9