Environmental andSocial Report 2010

Tokyo Electron’s Technology Supports
Our Everyday Lives in Familiar Ways
Since our establishment in 1963, the Tokyo Electron (TEL) Group has been developing, producing, and selling
products in a broad range of fields as a leading supplier of semiconductor production equipment. Utilizing thespecialized technology the Company has created in the field of semiconductor production equipment, Tokyo
Electron also develops, produces, and sells flat panel display (FPD) production equipment.

Semiconductor/
FPD manufacturer
Tokyo
Electron
Products

The CPUs, memory, liquid-crystal displays and other products manufactured
by Tokyo Electron’s semiconductor/FPD manufacturer customers areincorporated into a diverse range of electronics products throughout
the world and contribute to people’s enjoyment of technology throughdramatically improved high performance and low energy consumption.

Corporate Profile
Company Name : Tokyo Electron Limited (TEL)
Address: Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku,

Net Sales and Ordinary Income (Consolidated)
1,000

		 Tokyo 107-6325, JapanTel.

: +81-3-5561-7000

Established: November 11, 1963

Capital: ¥54,961,190,000 (as of April 1, 2010)

Main Products: Semiconductor production equipment, flat

		 panel display (FPD) production equipment, andNet sales(Billion yen)

Ordinary income

906.0

851.9
673.6

508.0

500

0

Mar. ’06

168.4

143.9

75.7

418.6

14.7
Mar. ’07

Mar. ’08

Mar. ’09-2.1
Mar. ’10		 photovoltaic (PV) cell production equipment
Employees: 1,099 (non-consolidated; as of April 1, 2010)

		 10,204 (consolidated; as of April 1, 2010)

Editorial Policy
This report is intended to explain the TEL Group’s stance on
corporate social responsibility and report on our initiatives
concerning the global environment and society. New information
concerning our commitment to customers and shareholders infiscal 2010 has been added to the report and its content enhanced.

2010 are available on our website:

http://www.tel.co.jp/environment/ehsreport.htm

71.3

Southeast Asia 6.2
and elsewhere

Europe 2.6

0.4

China 4.5

Year
ended
March 31,
2010

FPD/PV*
production
equipment

South
Korea

12.6
North
America

262.3

13.3

Semiconductor
production
equipment

Year
Japan
ended
38.9
March 31,2010
Taiwan21.9* PV: photovoltaic cellGroup Employees(Number of Persons)
10,000

9,129

9,877

10,685

10,491

10,204

Apr. ’08

Apr. ’09

Apr. ’10

5,000
0Scope of Report

(%)

84.4

appreciate you giving us your frank opinions and impressions using the
The results of Tokyo Electron’s environmental accounting for fiscal(Billion yen)

Electronic
components &computer networks

between the TEL Group and all its stakeholders, and we hope toquestionnaire form provided.

Net Sales by Region(Consolidated)

Other

It is our hope that this report will serve to enhance communication
make use of such communication in our future activities. We would

Net Sales by Division(Consolidated)

Apr. ’06

Apr. ’07

Tokyo Electron Group

Topics Covered(Tokyo Electron and subsidiary/affiliated companies in Japan andAreas related to the environment, society, and the economy

overseas)

Period Covered

Guidelines referred to in preparing thisreportFiscal 2010 (April 1, 2009 – March 31, 2010). However, someEnvironmental Reporting Guidelines (Fiscal 2007 version)

information for fiscal 2011 has also been included.

issued by Japan’s Ministry of the Environment
2006 Sustainability Reporting Guidelines published by the
Global Reporting Initiative (GRI)

2TOKYO ELECTRON

Environmental and Social Report 2010

Corporate Philosophy“TEL provides high-value products and services around the world that help people to lead healthy and enriched lives. Demonstrateconsistent leadership as a world class company by creating hope for the future and addressing environmental problems. Share a senseof mission with all TEL employees, and become an energetic, dynamic and creative company.”

TEL Values
Tokyo Electron Limited (TEL) summarized the values and codes of conduct of the Tokyo Electron Group as TEL Values in April 2006.
We will share TEL values with all employees of the Group around the world, which will in turn drive us toward new growth in the future.

TEL Values

TEL Values

Pride

Challenge

We take pride in providing high-value products
and services.

We accept the challenge of going beyond what
others are doing in pursuing our goal of becoming
number one globally.

TEL Values

TEL Values

TEL Values

Ownership

Teamwork

Awareness

We will keep ownership in mind as we think things
through, and engage in thorough implementationin order to achieve our goals.

We respect each other’s individuality and placea high priority on teamwork.

We must have awareness of and accept
responsibility for our behavior as respectful
members of society.

Contents
Corporate Profile/Editorial Policy
Corporate Philosophy/TEL Values

p. 2
p. 3

Top Commitment

p. 4Highlight
Internal Round Table Discussion:
The Potential of the Field Solutions Businessp. 6

Building a Low-Carbon Society

p. 10

Management Report
Corporate GovernanceCompliance

p. 12
p. 13

EHS Report
EHS Management
Product-related Initiatives for the Environment
Plant and Office Initiatives for the Environment
Health and Safety Initiatives

Social Report

p. 14
p. 16
p. 20
p. 24

Relationship with Customers and Suppliers
Relationship with Shareholders and Investors
Relationship with Employees
Corporate Social Responsibility (CSR)

p. 26
p. 27
p. 28
p. 30

Comments from a Third-Party Expert
Tokyo Electron’s History

p. 32
p. 33

3

Through our human resources and technological innovation,
the TEL Group is demonstrating leadership in creatinga brighter society and addressing environmental issues
Providing high-value technology andservice as a top supplierproduction equipment, and photovoltaic cell production
equipment. These key components in the age of digital
networks play a crucially important role, not only in our daily

Fiscal 2010 was a year that saw a huge decline in the global

lives, but also in the construction of social infrastructure andeconomy due to the financial crisis which began in autumn

environmental responsiveness. To enable further developmentof 2008. Consequently the electronics industry, of whichof these key components, sustained technological innovation

the TEL Group is a part, also faced a harsh environment. In

in the manufacturing equipment field is imperative.

response, Tokyo Electron took a consistent approach with

Tokyo Electron’s basic philosophy includes that weregard to invigorating our human resources, maintaining

provide high-value products and services around theworker employment, while at the same time consolidatingworld that help people to lead healthy and enriched lives.

development and production bases to enhance efficiency and

Demonstrate consistent leadership as a world class company

endeavoring to minimize fixed expenses. As a result of theseby creating hope for the future and addressing environmental

efforts, aided by a rapid market recovery in the second half ofproblems, and share a sense of mission with all TEL

the year, our losses for that period were far less than we had

employees, and become an energetic, dynamic and creative

initially projected—a promising sign for business recovery incompany.

the future.
The main business of Tokyo Electron is the supply ofsemiconductor production equipment, flat panel display

Demonstrating leadership in achieving
a low-carbon society through ourtechnological strengthInterest in environmental issues is growing in Japan
in particular, with the national government announcing
measures such as a reduction in greenhouse gas emissions
by 25% of the 1990 amount by 2020. A shift in values
concerning resources, energy, and the environment isoccurring on a global scale. In May 2008 under the slogan“Technology for Eco Life,” Tokyo Electron announced its
commitment to the environment and has since been actively
working to reduce impact on the global environment. TEL
is pursuing this endeavor through the use of technology,
by establishing key objectives, such as the development of

4

TOKYO ELECTRON

Environmental and Social Report 2010

of customers’ factories to be halved by 2015, as well as

Making employee activation our driving
force for growth

reducing the impact of our business activities and logistics on
the environment by 50%.
In fiscal 2010, the energy-saving capacity of all our

We believe that “employees are Tokyo Electron’s assets.”
Despite the harsh business environment in fiscal 2010, we

production equipment was further improved throughhave been enhancing our employee training through our “Oneinnovations such as reducing the use of clean water (cleaning

Grade Up Program” aimed at helping each of our employees

system), exhaust emissions (coater/developer), and pumptake their individual skills to the next level as we look towards

electricity (single wafer deposition). Our field solutions

the next period of growth. Through this program, combined

business was launched to enable us to better respond towith training at our existing internal educational body, TEL

customers’ needs regarding existing equipment. Tokyo

UNIVERSITY, we are endeavoring to improve our employees’Electron has shipped more than 50,000 units of production

capabilities. In addition, as a leading production equipment

equipment worldwide and in the future we will be able tosupplier, Tokyo Electron is undertaking activities to spread our

respond consistently to requests to improve the productivity

basic principle of “providing high value for the constructionof our equipment and their environmental friendliness. It isof a social foundation including people’s lifestyles and thealso possible for us to contribute broadly to society throughenvironment” so that it may be shared by all employees on alowering the power consumption of the semiconductor

company-wide level.

Top Commitment

production equipment that enables the environmental impact

devices manufactured using our equipment.
In our PV cell production equipment business
which we launched in 2008, we are utilizing technology
accumulated through our experience with semiconductor

Building the future with local
communities through corporate
citizenship activities

production equipment and striving to accelerate researchand development with the aim of building a low-carbon

As a company with bases throughout the world, Tokyo

society. The thin-film silicon equipment business, which

Electron is aware of its role as a member of the local

Tokyo Electron is part of, is faltering due to investors pushingcommunity, undertaking corporate citizenship activities whileback the timing of their investments following reductions incollaborating with individual local communities in conscious

government subsidies for PV cell development and production

efforts to contribute to the development of each community.

as well as weakened competition for crystal systems following

In fiscal 2010, Tokyo Electron co-hosted with a local

significant drops in the price of silicon. However, this is anewspaper company a well-received hands-on scientifictechnology with ample room for improving energy conversion

experiment in Miyagi Prefecture, where our new plant isefficiency and huge growth can be expected in the medium toto begin operations in 2011, in collaboration with local

long term.

universities and NPOs. In the United States, our company

In fiscal 2010, Tokyo Electron also undertook
environmental investment expected to reduce CO2 emissions
by approximately 3,000 tons as part of our workplaceenvironmental measures. At our new plant in Taiwa-cho,headquarters in Austin, Texas has participated in the “KeepAustin Beautiful” clean-up program continuously for morethan 10 years.
That concludes my somewhat simplified report of Tokyo

Miyagi Prefecture, in Japan, which is due to go into operation

Electron’s activities in fiscal 2010. It is my hope that thisin April 2011, we will be incorporating various cutting-edge

Environmental and Social Report will enable you to gain anenvironmental measures, including PV power generation.

understanding of our company’s activities, and I welcome any

We will continue to promote environmental activities ascomments you may wish to share with us.

we move towards achieving our commitment goals.
Hiroshi Takenaka
President & CEOTokyo Electron Limited

5Internal Round Table Discussion:
The Potential of the Field Solutions Business
Our field solutions (FS) business undertakes the maintenance, repair, and modification of semiconductor
production equipment supplied by the TEL Group to customers, and until now responsibility for thesebusiness activities was spread over multiple organizations, including post-sales divisions. In October 2009
these activities were unified and our FS business launched. Employees involved in this area conducted around table discussion of the potential for FS business (the discussion was held on June 28, 2010).

Generating innovation in the FS businesslocal situations and creating ideas independently.
Asano: I feel that the equipment modification business,

Moderator: Business models in the world are changing

which was inactive only a few years ago, has really changed.

dramatically. From now on not only cutting-edge but also

Our company is now calling this a period of innovation andlow-cost and other numerous semiconductor applications

growth. In the FS business, too, we intend to construct new

are going to become necessary, especially when aiming

business models and generate innovation.

at developing countries. Is there a relationship between

Sakamoto: I think that one way to generate innovation isthe background to these times and the launching of the FS

through interpersonal communication. By expanding ourbusiness?

FS business, our close communication with customers has

Kaminaga: In our FS business, the entire TEL Group is

become livelier than ever before and this has promoted

responding to the polarization of the market into competing

innovation. Moreover, by making use of the broad knowledge

with cutting-edge technology and effectively utilizing existing

and know-how we have accumulated in developing bothdevices and production lines through the sale of TEL-certified

hardware and software, we provide consulting services forused equipment and other efforts. Since there is expected toour customers mainly to boost yield and improve wafer

be demand for FS business products and services centeredproductivity. We believe that we should proactively provide

on consumables even during economic downturns, thesupport based on our knowledge to not only customers

business is thought to have the potential to contribute torequiring cutting-edge technology but also customers

the stabilization of operations. We are also developing newdesiring to improve the production efficiency of their existing

business models that provide not only hardware-related but

semiconductor factories so that they may achieve the sameacross-the-board high-level equipment operation support. We

level of operations as cutting-edge semiconductor factories.

can perceive changes that have come to the surface within
the companies in relation to this move in the last six months.
Active communications from our locally based affiliates
overseas are also increasing, with local offices responding to

6TOKYO ELECTRON

Environmental and Social Report 2010

Fumihiko Kaminaga

Ritsuro Maekawa

Field Solutions Dept.
Tokyo Electron Limited

Field Solutions Dept.
Tokyo Electron Limited

Takanobu Asano
Minoru Kunugi

Koyu Hasegawa

Kanto Field Solutions Dept.
Tokyo Electron FE Limited

Development GroupTokyo Electron PS Limited

General Manager
Technology &Development DivisionTokyo Electron PS Limited

Joji Hoshi

Koichi Sakamoto

Environment,
Health & Safety CenterTokyo Electron Limited(participating via teleconference)
Field Solutions Dept.
Tokyo Electron Limited

equipment stops, but the results of a survey show that 86%

Moderator: Please describe the situation regarding usedof the equipment ceased, we are collecting opinions on our

semiconductor production equipment.

support from major customers, and so our policy is to

Kaminaga: Power semiconductors* and other devices still use

respond to these requests to the very best of our ability.

small-diameter wafers today. If applications can be adapted,

are still in operation. Currently, six years after production

Main FS Business Services

However, some customers say that the latest equipment isEnvironmental responsivenessbetter for dealing with fine particles of dirt and dust.
Sakamoto: We occasionally provide consultation regardingused equipment. There are more problems with how to deal
with dirt and dust particles than there is for new equipment.
Onodera: One key point in the TEL Group’s usedequipment business is that the equipment is sold only after

Modification

Contract services

Relocation

Refurbishment

Used equipment

Parts sales

MANAGEMENT REPORT

production can be carried out even with used equipment.

of the models that we produced and delivered 22 years ago

HIGHLIGHT

Tokyo Electron’s used equipment
business

Internal Round Table Discussion:

Akira Onodera

The Potential of the Field Solutions Business

Manager
Field Solutions Dept.
Tokyo Electron Limited

improvements have been made to enable it to handle dirt
and dust particles. These measures are not undertaken after
Reform/improvement

Prolonging equipment life

beforehand. We believe it is best that the equipment is firsttaken to one of our factories where it is refurbished (repaired,inspected, etc.) so that it will function adequately at eachspecific customer site before being delivered to the customer.

Reducing costs by listening to workers’
opinions and utilizing their experience

EHS REPORT

the used equipment is installed in the customer’s factory but

In this way, defects resulting from aging degradation andModerator: It seems that ideas are sometimes born frombe avoided.

discussions with customers. What about the awareness of

Maekawa: Some customers require products that are low-

workers?

cost. By launching our FS business and dealing in usedequipment, we have latched onto a new market. I think it isgood to pursue our used equipment business while at thesame time maintaining our customers in the cutting-edge

SOCIAL REPORT

various other problems associated with used equipment canequipment field.
Kunugi: We also provide replacement parts for equipmentthat is still used at customer sites but is no longer inproduction, by reusing parts recovered from used equipment
we have collected. The TEL Group provides part replacement
support for up to eight years after production of the* Power semiconductors: semiconductors that can convert/regulate power
voltage/current with high efficiency

7

Onodera: In attempting to satisfy our customers’ high-utilize the expertise of experienced engineers effectively.

level requirements, engineers make improvement after

Onodera: Engineers’ rich experience and skills generate

improvement, which leads to new ideas and our businesscustomer satisfaction and this leads to trust. I think in thisexpands. Our business requires knowledge about not only

business the strength of the workplace brings benefits

semiconductors but also electricity, gas, machinery, and a

directly to both parties.

diverse range of other fields. I know that all of our engineers
in our various workplaces find the work very interesting.
Maekawa: In marketing you need substantial knowledge of how

Reducing customers’ environmental
impact through FS business activities

to achieve optimum operations through equipment modificationand the costs must be appropriate. We are working out how toModerator: Increased yield and reduced equipment standby

reduce costs by making trial-and-error efforts in cooperation

times also lead to reductions in environmental impact. To

with plant staff.

what extent are customers concerned about this aspect?

Hasegawa: Awareness of cost has taken root in our FS

Hoshi: Customer interest in reducing environmental impact isbusiness because of the constant need to reduce costs,

becoming higher than ever before. With respect to reducing

including for marketing, and we endeavor to control costs

environmental impact, what is important is not just simply

from the development stage.

emphasizing the environment and energy conservation but

Moderator: I assume that veteran engineers, in particular,

instead making proposals that position energy as a cost; timing

play an active role in many aspects of the FS business. Is thisis also very important. For example, energy-saving models or

the case?

functions are effectively recommended to customers who plan

Kunugi: Certainly. Each of our engineers has accumulated

to replace equipment. Adding functions after the equipment

experience and knowledge, and so they play important roles

is installed increases costs, so relocation of equipment orin various aspects of the business. I think it’s necessary toa factory is also a good time to suggest and implement
environmental measures.
Asano: Without legislation or numerical targets set by thegovernment to reduce environmental impact, it would not be

Customer Comment

easy to go after environmental measures head-on. We areconsidering ways of incorporating energy-saving functions

Because of Tokyo Electron’s consulting services,

into our products effectively from the development stage.

we have been able to significantly reduce waste in

Kaminaga: As old equipment generally does not havesemiconductor production, decrease the rate of defective

modern energy-saving functions, some people think that old

semiconductor devices, and improve our yield ratio. The
cumulative economic effects equal several hundreds ofequipment hinders the customers’ effort of reducing CO2
emissions. Many customers ask us for advice on the effective

millions of yen in cost reductions

use of high-energy-consuming parts such as pumps, heaters,

and have contributed to reducing

coolers, and main units.

semiconductor device costs.

Onodera: Sometimes it’s difficult to get customers to accept
proposals for reducing CO2 emissions because the return on

Shinya Watanabe
Chief Engineer
Production Technology No. 2 Division
Naka Factory, Production Headquarters
Renesas Electronics Corporation

investment is difficult to discern. I think it is also important toobtain the understanding of the customer’s top managementwith an easy-to-understand proposal before moving ahead.
Moderator: From the perspective of saving and reusing
resources, I think that utilizing used equipment is appropriate
for the times. Are there any expectations for the FS businessfrom the environmental division?
Hoshi: We view prolonging the life of equipment itself as
more important than parts. When you look at environmental
impact from the perspective of the product lifecycle,
continuing to use old equipment is one way of efficiently
using resources, and I think this is a point that we needto emphasize in promoting used equipment to customers.
Furthermore, while persistent efforts are being made to makeall our major products more eco-friendly, we expect additional
efforts to be made by developing other devices supporting
environmental measures, including a system for visualizing
data on energy use.
Kaminaga: Currently we are analyzing benchmark survey

8TOKYO ELECTRON

Environmental and Social Report 2010

results and yield management data and checking the findings
against our knowledge to enable us to formulate proposals for
Sakamoto: It is necessary to transform the data we havegathered from information into knowledge. Only after we go
through this process, we will be able to use that knowledge tomake new proposals, including data on energy-saving pumps,
which we have recently begun to promote. We intend to
expand these proposals.
Maekawa: In order to sell used equipment, we shouldemphasize the environmental conservation aspects suchas reducing CO2 emissions. Purchasing new equipment for
replacement entails disposing of the old equipment, which has
a considerable impact on the environment. We are working
to help customers understand that it is possible to achieve agreater reduction in CO2 emissions by reusing used equipment
rather than simply by purchasing new equipment.

the TEL Group has a tremendous advantage in identifying wherein the round table discussion, I was reminded of the potential

any problems lie due to our extensive knowledge of multipleof our FS business, which was launched in response to thetypes of equipment and production lines. When we are able tochanging needs of society.

come up with complex solutions, the FS business is sure to

The TEL Group has been conducting its business activities
with the trust of our customers, which we have gained throughbecome even more interesting.
Like other industries, the semiconductor industry isreliable service and cutting-edge production equipment.

cost-sensitive; therefore, reducing costs for electrical power

However, customers’ interest is not limited to the purchase of

consumption and conserving cleaning solution and resist are

new production equipment but has also begun to include thehigh priorities. Unfortunately, production equipment did not

combined utilization of existing production equipment and usedhave sufficient energy-saving functions in the past, but if current

production equipment. The FS business was launched with thetechnology can be fed back into this equipment, I believe it canobjective of responding to these new needs.

also contribute to reducing environmental impact by conserving

In our sales of TEL-certified used equipment, the TEL Group

resources and energy while at the same time reducing costs.
Utilizing one technology effectively for a long time leads toon our independent standards. Our base has recently expanded

an eco-friendly business. Moreover, amidst an industry-widewith the introduction of new used equipment, which is produced

trend toward eco-friendliness, we intend to take a leadershipusing the same method as new products, using pre-owned unitsrole in promoting these activities and strive to encourage otherfor some parts. Of course, considering how to best utilize ourequipment manufacturers to understand the importance ofcorporate strengths, I believe that the FS business will be in anthese efforts.

EHS REPORT

handles high-quality used equipment through certification based

MANAGEMENT REPORT

Listening to the opinions expressed by the various participants

HIGHLIGHT

Opinions voiced in the round table discussion

Internal Round Table Discussion:

The Potential of the Field Solutions Business

improvements.

extremely important and attractive position in 10 to 30 years
for covering the needs of the used equipment market, which is
SOCIAL REPORT

expected to expand.
Looking also at our utilization of human resources,
because the requirements of customers in the used equipment
market differ from those of customers buying new production
equipment, I believe the FS business is a very attractive field forveteran engineers, whose technological expertise and experience
are necessary for answering questions such as “How do we
maximize efficiency?” and “What are the issues involved when
we consider overall optimization?” They are also given theopportunity in this field to work with young engineers in creating
something new. With so many types of equipment in existence,

Kiyoshi Sunohara
General Manager
FSBU
Tokyo Electron Limited

9Building a Low-Carbon Society

Photograph: Oerlikon Solar KAI (PECVD)

Solving environmental problems such as global warming, climate change, and energy resource depletion is an urgent
task for humankind. Under our principle of “tackling environmental problems with technology,” the TEL Group is taking
an even greater leadership role in addressing environmental problems in order to create a society of dreams.

The TEL Group and its PV Cell Production Equipment Business
Renewable energy is gaining attention within society due to
expectations that it can contribute significantly to preventing

Tokyo Electron’s PV Cell Production Equipment
Business Expansion

global warming because it emits no or fewer greenhouse gases

Joint Development with Sharp

than current mainstream energy sources and can be used almost
to be representative of this renewable energy. However, further• Plasma CVD systems for use in thin-film
silicon PV cells• Tokyo Electron: Joint development,
manufacturing, and sales

technological innovation and cost reductions are necessary

Collaboration with Oerlikon Solarto overcome the current challenges, including increasing the• End-to-end production line for thin-film silicon
PV cells• Tokyo Electron: Sales representatives in
Asia and Oceania

perpetually. PV power generation using solar energy may be said

efficiency of converting solar energy to electricity, overcoming theshortage of materials for producing the necessary equipment andoverall cost improvements.
Utilizing our production technology cultivated through ourexperience and expertise with semiconductor and FPD production
equipment, the TEL Group made a full-scale entry into the PV cell
production equipment business in 2008. In February of that year,
we set up a joint venture company with Sharp Corporation (Sharp)
to begin joint development of plasma CVD1 systems for use in

Independent development by Tokyo ElectronTOKYO ELECTRON

Installation of a PV power system on
the roof of the new Tokyo Electron
Taiwan Ltd. (TET) premises
A PV power system was installed on the roof of the new TET

thin film silicon PV cells. In February 2009, we also entered an

premises, which were completed in October 2009. Several

exclusive sales representative agreement with Oerlikon Solar Ltd.

types of PV power panels were installed and information(Headquarters: Switzerland) for end-to-end thin-film silicon PV

about the relationship between the amount of solar radiation

cell production lines and equipment in Asia and Oceania. The TEL

to which each panel is exposed and the amount of electricity itGroup is also undertaking independent development of technology

generates is monitored, compared, and evaluated. Currently,

in relation to chemical and organic PV cells and CVD equipment for

the amount of electricity generated is no more than 11 kW,

use in production processes.

but we intend to utilize feedback from these panels to further

Based on our belief that we must employ technology to tackle
environmental issues, we are striving to strengthen our PV celladvance the Group’s technology and enhance productdevelopment and production.

production equipment business to make it the third pillar of ourGroup following our semiconductor manufacturing equipment andFPD production equipment businesses and consequently increase
our contribution to society.
1 CVD (Chemical Vapor Deposition): a method for creating thin films onwafers. Vapor containing the constituent elements of the desired thin film
is poured over the wafer and chemical reactions initiated on the wafer
surface, creating the thin film.

The PV power system on the roof of the new TET premises

10

TOKYO ELECTRON

Environmental and Social Report 2010

PV cell factory begins operations at Sharp Corporation’s “Green Front Sakai”
March 29, 2010. This Sharp factory produces thin film siliconcompany with Sharp Corporation (Sharp) to undertake

PV cells using large glass substrates measuring 1,000 mm

cooperative development of plasma CVD systems for use inx 1,400 mm. The thin film silicon PV cells comprise siliconthin film silicon PV cells. The equipment developed throughthinly deposited on these glass substrates. This is a highthis partnership has been delivered to the PV cell factory atenergy-saving structure, which allows a significant reduction

Sharp’s “Green Front Sakai” manufacturing complex in Sakaiin the amount of silicon used to approximately 100th of that

City, Osaka Prefecture, and factory operations began onused in the production of crystal PV cells.

Sales launch of the Probus-SiC™ batch system, which forms SiC epitaxial films
on SiC substrates for use in next-generation power semiconductor applications

Building a Low-Carbon Society

In February 2008, the TEL Group established a joint venture

The voltage of electricity generated at power stations is toohigh to be generally used, thus it needs to be lowered throughvoltage conversion at a substation or by a transformer
before the electrical power can be utilized. Moreover, as newtechnologies are being developed to support expanding power
HIGHLIGHT

utilization, such as PV power generation, battery storage aswell as smart grids,2 minimizing power conversion loss is
becoming an increasingly important issue. Currently, mainly
silicon power semiconductors are used for this purpose, but
we now know that using SiC (silicon carbide) instead reduces
the loss tremendously and can be used efficiently.
Applying its accumulated semiconductor productionof SiC power semiconductors, the TEL Group has now
launched sales of the “Probus-SiC,” a device for forming
SiC epitaxial films3 on SiC substrates. The core technology
used for this equipment is the result of industry-university
collaborative research conducted by Kyoto University, Rohm
Co., Ltd., and the TEL Group. Using this tool enables highly
productive formation of high-quality epitaxial films and cancontribute to the realization of SiC power semiconductors.

2 Smart grid: a power grid with the function of automatically adjusting
the supply and demand of electrical power to optimize the supply ofelectricity
3 Epitaxial film: film that has the same crystalline structure as theunderlying crystal substrate

SiC is gaining attention as a new material to follow Silicon,

power losses.
The current issue is that the prices of SiC substrates are

Silicon, SiC is expected to increase the efficiency of electricalmuch higher than for silicon substrates of the same size, but ourpower conversion—whether by inverters or converters—andcontinuing research and development and cost reduction efforts

greatly reduce electricity losses, thereby leading to a reduction

will lead to the growth of thein CO2 emissions. SiC can also accelerate switching speed,

SiC market, thus contributing towhich helps the development of small devices with good

low-conversion-loss electricalperformance.

power usage and a reduction in

SiC can be used effectively in hybrid and electrical cars,

CO2 emissions.

for example. Currently, these vehicles are equipped with

SOCIAL REPORT

which is currently used in semiconductors. Compared with

EHS REPORT

Improved power conversion is expected to reduce CO2 emissions

MANAGEMENT REPORT

technology for developing new tool to support the possibility

inverter-cooling devices, which could be made unnecessary
by using SiC, as this material can work in a high-temperatureenvironment. This in turn enables extension of driving distanceby reducing the weight and size of the vehicle. In addition, theuse of SiC for wind and hydroelectric power generation, smart
grids, and other measures enables the reduction of electrical

Toshiya Nishino
New Products Promotion Dept.
Tokyo Electron Limited

11

Corporate Governance
The TEL Group is strengthening its corporate governance as well as improving andreinforcing internal control systems and risk management structures with the aim of
maximizing its corporate value.
Corporate Governance Policies
The TEL Group is striving to strengthen its corporate

Internal Control and Risk Management
Systems

governance through a variety of measures in order to

To strengthen the internal control and risk management

maximize corporate value and enhance shareholder

systems of the TEL Group more effectively, Tokyo Electron issatisfaction. We are endeavoring to establish and operate

implementing practical measures in line with the basic policy

optimal and highly effective structures of governance that arefor internal control systems in the Tokyo Electron Group

based on our three basic principles for reinforcing corporate

decided by the Board of Directors. Tokyo Electron has also

governance.

appointed a Chief Internal Control Director and a Compliance

Basic Principles of Corporate Governance
1. Ensure the transparency and soundness of business operations
2. Facilitate quick decision-making and the efficient executionof business operations
3. Disclose information in a timely and suitable manner& Internal Control Executive Officer. Under them the Company
has established the Risk Management & Internal Control
Department, which evaluates and analyzes risks that could
affect the TEL Group and works to reduce risks by promoting
the necessary measures.

Corporate Governance Framework

In addition, the Global Audit Center was established as an

Tokyo Electron uses the statutory auditor system based on theinternal audit organization that overseas the internal auditing

Company Law, and has also established its own Nomination

activities of the entire group’s domestic and overseas bases,

Committee1 and Compensation Committee2 inside theas well as their compliance and systems. When necessary,

Board of Directors in order to increase the transparency

the Global Audit Center also provides guidance to operating

and objectivity of management. Tokyo Electron has also

divisions.

adopted the executive officer system to separate the businessexecution function from the Board of Directors. In addition,
the Company has been disclosing the individual remunerations

Framework for Corporate Governance, Internal
Control System and Risk Management Systemof representative directors since 1999 in recognition of theAnnual Shareholders’ Meeting

importance of managerial transparency for shareholders.
1 Nomination Committee: nominates candidates for directorships and CEO
and submits these nominations to the Board of Directors
2 Compensation Committee: prepares a draft remuneration plan for the
Chairman and the President and CEO and submits the draft to the Boardof Directors

Board ofDirectors

Board of Directors

Compensation
Committee
Nomination
Committee
Chief Business
Ethics Director
Chief Internal
Control Director

Statutory Independent
Auditors
Auditors

The Board of Directors consists of 12 members, two of whomare external directors. In order to ensure that the Company
can respond quickly to changing business conditions, and to
office for directors is set at one year. During fiscal 2010, theBoard of Directors met on 12 Occasions.

Representative
Directors

Request for
improvement/Report

Request for
improvement

more clearly define management accountability, the term ofCompliance & Internal
Control Executive Officer

The Company has four statutory auditors, two of whom
are outside auditors. The statutory auditors not only attend
meetings of the Board of Directors, the Management Meetingand other important business meetings, but also conduct
operations audits and accounting audits, and evaluate risk
management, in addition to auditing the performance of
duties by directors. During fiscal 2010, the board of statutory
auditors met seven times.

12

TOKYO ELECTRON

Environmental and Social Report 2010

Committees• Ethics Committee• Information Security
Committee• Export Trade Control
Committee
Risk Management &Internal Control Dept.
Request for
improvement/
ReportReportAudit and
improvement
reports

Executive
Officers

ReportBoard of Statutory Auditors

Confirm the progress ofimprovements andgive instructions

Request for
improvement

Internal
Audit Dept.
(GlobalAudit Center)

Audit

Monitoring

Administrative Depts.

Check andbalanceBusiness Depts.

Compliance
The TEL Group acts in strict compliance with corporate ethics and applicable laws to ensurethat its corporate activities are fair and reliable.
Compliance & Internal Control
Executive Officer

Trust is the cornerstone of the TEL Group’ business

Since April 2009, Tokyo Electron has appointed Compliance &foundation. The fundamental requirements for maintaining

Internal Control Executive Officer from among its executive

trust are rigorous conformity to ethical standards andofficers to raise awareness of compliance across the Group

compliance with the law, by individual employees and by eachand further improve its implementation.

of our organizations.
the Tokyo Electron Group, all Group employees are required

Framework for ThoroughImplementation of Complianceto maintain high standards of ethics and to act with a clear

Tokyo Electron has drawn up compliance regulations setting

awareness of compliance.

out basic compliance-related requirements in line with its CodeIn line with the basic policy for internal control systems in

Corporate GovernanceCompliance

Stance on Corporate Ethics and Legal
Complianceof Ethics. The compliance regulations are intended to ensure

Ethical Standards, Chief Business
Ethics Director and Ethics Committeethat all individuals who take part in the business activities of

In 1998, the Company formulated the Tokyo Electron Code ofinternational standards, and internal company rules andEthics (revised in June 2007) to establish uniform standards

continuously apply these rules in all of their activities.

the Group clearly understand the pertinent laws, regulations,to govern all of its global business activities.
In the same year, Tokyo Electron appointed a Chief(1) Internal Reporting System
In the event that an employee becomes aware of any activity which

Committee, which is responsible for promoting awareness of

may violate laws, regulations or principles of business ethics,

business ethics throughout the Company.

the Company operates an internal reporting system (hotline) that

The Tokyo Electron Code of Ethics prescribes a common

employees may use to report their concerns. Strict confidentiality

code of behavior for all employees of Tokyo Electron and theis maintained to protect the whistle blower, and to ensure that theyGroup and the Company distributes it to all Group employees,

are not subjected to any disadvantages or repercussions.

HIGHLIGHT

Business Ethics Director and established the Ethics

including those overseas.
Tokyo Electron conducts Web-based training programs for

The Code of Ethics of the Tokyo Electron Group

all its employees, makes information on compliance issue

Introduction

available to employees via the Company intranet, and takes

I. Principles
1. Compliance with Applicable Laws
2. Acting in Accordance with Social Conscience
3. Maintaining Harmonious Relationships with
Local Communities

II. Honest and Fair Business Activities

15. Prohibition of Insider Trading
16. Prohibition of Political Activities and Contributions
17. Prohibition of Involvement in Antisocial Forces
18. Respect for Individuals
Implementation of the Code of Ethics** The “Implementation” section provides specific mattersand procedures(3) Management of Information on Japanese Laws
In order to reduce the risk of legal compliance violations, Tokyo
Electron regularly identifies and clarifies the Japanese lawsthat affect company operations and regulations. Information
regarding revisions to relevant laws is received in a timely
manner via an external Web service and appropriate responses
taken such as amending regulations, changing operational
procedures, and notifying all personnel affected by the revisions.

(4) Protection of Personal Information
When the Act on the Protection of Personal Information
came into full effect, the Tokyo Electron adopted a basic
policy and regulations concerning the protection of personal
information and prepared various manuals regarding thehandling of personal information. Tokyo Electron has also
been conducting Web-based training for employees and taking

SOCIAL REPORTIII. Being a Good Corporate Citizen

throughout the Company.

EHS REPORTII - 1 Technology, Safety, and the Environment
4. Ensuring Safety and Pursuing Quality
5. Promoting Environmental Preservation Activities
6. Ethics in Manufacturing
II - 2 Fair Trade
7. Implementing Fair and Open Competition
8. Fair Business with Suppliers
9. Handling of Confidential Information
10. Strict Export/Import Controls
11. Reasonable Exchanges of Gifts and Entertainment
within the Bounds of Common Sense
II - 3 Relationship between the Company and Individuals
12. Prohibition of Conduct Causing Conflicts of Interests
13. Prohibition of Improper Use of Company Assets
14. Prohibition of Conduct of Harassment

other steps to promote broad awareness of compliance

MANAGEMENT REPORT(2) Employee Training

other measures to ensure the proper implementation of thesepolicies and regulations in business operations. In addition,
Tokyo Electron has been strengthening personal information
management through such measures as installing computer
servers specially equipped to handle the storing of personal
information, introducing encryption functions, and using
auxiliary storage units with password-based access control.

13

EHS Management
The TEL Group regards environment, health, and safety activities (EHS activities) as its top
business priorities.

Fundamental Idea behind EHS Activities
and Our EHS Promotion System

The TEL Group’s EHS Promotion System

The TEL Group regards people’s health and safety and the

Global EHS
Committee

global environment as two of our most significant businesspriorities. We are committed to earning the trust of all of those
involved in our business operations and to carrying out our

Plant and
Office EHS

Customer-Site EHS

Product EHS

EHS activities ineach region

EHS activities atcustomers’ facilities

EHS activities
concerning
the Group’s products

business activities accordingly, basing our actions on ourbelief that EHS activities will lead to long-term benefits forthe entire group. As a responsible corporate citizen, we arecommitted to realizing a healthier and more affluent society
through implementation of our EHS activities.
We have established an EHS promotion system in orderto foster EHS activities throughout the entire TEL Group. Our

ISO 14001 Certified Plants and Offices

EHS activities cover three areas: Product EHS; Customer-Site

Company namePlant/Office name

Certification date

EHS, which concerns product delivery and design operations;Tokyo Electron Tohoku Ltd.

Tohoku Plant

February 19, 1998

and Plant and Office EHS. These activities are overseen by ourTokyo Electron Kyushu Ltd.

Koshi/Ozu Plants

March 26, 1998

Yamanashi Plant(Fujii/Hosaka area)

May 15, 1998

Global EHS Committee.
TEL’s Group companies, and TEL’s manufacturing

Tokyo Electron AT Ltd.

Miyagi Plant

March 1, 2005

Tokyo Electron Technology
Development Institute, Inc.

Sendai Office

June 24, 2010

Tokyo Electron Device Ltd.

Yokohama Office

July 14, 2004

subsidiaries in particular, began developing and implementing
environmental management systems based on ISO 14001 in
1997 and are in the process of obtaining ISO 14001 certification.

EHS Training
The TEL Group offers EHS-based training courses for bothgroup employees and employees of partner companies who

EHS Monitoring System

work at the Group’s facilities. The training course for new

In order to increase the effectiveness of our EHS management

employees also includes a mandatory EHS program.

system, we continually increase the level of auditing that

In fiscal 2010, our triennial basic safety training took

checks system functions and results. Auditing is performed

place. This program dealt with various themes, includingfrom multiple viewpoints: within plants and offices, within themessages from top management about the Group’sGroup, and by third parties.

environment and safety policies, and was attended by all
employees.

TEL’s manufacturing subsidiaries endeavor to comply withlaws and regulations, carefully checking environmental laws,
emissions standards, and other pertinent regulations while
also establishing their own standards for some substances.
In fiscal 2010, there were no environment-related
accidents, legal violations, fines, or complaints within the TELGroup.

Basic safety update training via the Internet

14

TOKYO ELECTRON

Environmental and Social Report 2010

Audits are performed by third parties.

EHS Management

Tokyo Electron’s Environmental Commitment
In May 2008, the TEL Group spelled out its environmental commitment under the environmental
action slogan “Technology for Eco Life.”lW e aim to develop equipment that enables a 50% reduction—compared to the 2007 levels—of the total
environmental impact of new customer factories scheduled for completion in 2015 or later.
lW e aim to reduce the impact of our business and transportation activities on the environment by 50%, by
2015, compared to the 2007 levels.
lW
 e will strive to achieve these commitments in partnership with our stakeholders.

Progress in TEL’s Environmental
Commitment

emissions per 100 million yen in sales) for fiscal 2008 throughIn fiscal 2010, we set specific targets and examined methods

2015, or a 50% reduction on the basic unit for fiscal 2008.

of achieving these targets. We set the target year as fiscal

Basic units for fiscal 2008 through 2010 remained virtually the2010. We have set a target of 14.45 t/100 million yen by fiscal

2015 (period ending March 2015) in line with the TEL Group’s

same, because CO2 emissions reduced in parallel with changes

medium- to long-term business goals.

in sales volumes. In fiscal 2010, environmental investment
was carried out to reduce CO2 emissions from the entire TELGroup’s business activities by approximately 3,000 tons (seeIn fiscal 2010, to enhance the energy-saving capacity of ourvolumes (see page 19).

page 20). CO2 emissions from logistics activities decreased
from the base year due in part to decreases in shipping

HIGHLIGHT(1) Develop equipment that enables a 50%
reduction in the total environmental impact ofcustomer factories
production equipment, we took appropriate measures basedon roadmaps for each of our products. Reduction in resource(1,000 tons)of pure water in cleaning systems; volume of exhaust from

28.9

coater/developers; and pump electricity in single wafer
300

deposition. As a result, we were able to achieve a reduction of
30% or higher in CO2 emissions per wafer unit during use for

30.3(t/100 million yen)

30

261

200

approximately 30% of our products.

30.3

154

14.45
126

10

100

(2) Reduce the environmental impact of ourbusiness and transportation activities by 50%

0

The graph on the right shows trends in CO2 emissions for the

’08

’09

CO2 emissions

Basic unit

’15 (FY)

0

TargetGoals and Results for Fiscal 2010 EHS Activities and Goals for Fiscal 2011 EHS Activities
Action item

Relatedpages

Audits in FY2010 were shelved
due to economic trends, etc.

Continue to conduct audits

p.14

Achieve the TEL
Environmental Roadmap
targets (compliance andsupport in preparation forshipments beginning in
October 2008)

Began shipment of equipment
containing reduced amountsof chemicals in October 2008

Increase the numberof products in compliance;
continue to examine
chemical-related regulations
and implement measuresfor compliance

p.18

Continue zero emission
efforts at manufacturing
plantsAchieved zero emissions at
manufacturing plants.
The recycling rate for the entire
Group remained as high as theprevious fiscal year

Continue zero emission
efforts and examine
reducing the total amountof wastep.22

Achieve a 30% year-onyear reduction in thenumber of accidents
involving injuries orfatalities

The number of accidents
involving injuries or fatalities
was reduced year-on-year by
18%, falling short of the target

Target a 30% reduction in
accidents involving injuries
or fatalities in FY2011
compared to the FY2009
level

p.24

Results for FY2010

Perform EHS internal
audit at plants and offices
across the supply chain

Product-related reduce the use ofregulated chemical
initiatives forthe environment substances in

Plant and office
Waste reduction
initiatives forthe environment

EHS
management

EHS internal
audit
Measures toequipment

Health andsafety related
initiatives

Reduction in thenumber ofaccidents/disasters
involving injuries orfatalities

Achieved target

Achievement
level

Achieved 80% of target

SOCIAL REPORT

Plans and goals for
FY2011 onward

Goals for FY2010

EHS REPORTTEL Group’s business/logistics activities and basic units (CO2

’10

20

MANAGEMENT REPORT

Trends and Targets for CO2 Emissions Caused
by Business/Logistics Activities

use was achieved for respective equipment categories: use

Achieved less than 80% of target

15

Product-related Initiatives for the Environment
In accordance with Tokyo Electron’s Environmental Commitment, the TEL Group aims to halve the total
environmental impact of customer factories through measures such as reducing energy requirements
during the usage phase of a product’s lifecycle and minimizing the use of regulated chemical substances.

Initiatives for Products with Less
Environmental Impact during Use

the business units were required to address the following

Approach to Reducing theEnvironmental Impact of Our Products

the number of parts and processes required, reducing the

The TEL Group believes it is important to promote

the environmental performance of existing equipment. In

environmentally conscious designs within our business activities,

addition, they were encouraged to cover voluntary items, suchas is clearly stated in the TEL Group “Credo and Principles on

as reducing the number of processes required for equipment

Environmental Preservation.” We give top priority to supplying

installation. Progress toward achieving the prescribed goals isenergy-saving equipment and to reducing or finding alternatives

reviewed under the Group’s medium- to long-term plan.

mandatory items: reducing equipment energy requirements,
addressing chemical substance-related matters, reducing
use of processing gases and liquid chemicals, and improving

to the regulated chemical substances contained in our products.
Environmental Roadmap

Organizations for Reducing
Environmental Impact

1. Reducing our products’ energy requirements
2. Addressing matters related to chemical substances
3. Reducing the number of parts and processes required
4. Reducing the use of processing gases and liquid chemicals
5. Improving the environmental performance of existing equipment

Two working groups, the Chemical Substances Steering Teamand the Product Working Team have been established topromote the TEL Group’s efforts to reduce the environmental
impact of its products. The Chemical Substances Steering
Team works to reduce or substitute the use of regulated

Technology Symposium

chemical substances in our equipment parts and components.

Following on from 2008, in December 2009, the TEL Group

The Product Working Team has developed and started

held its 12th Technology Symposium at the Tokyo Electron

to implement roadmaps for each business unit to reduce

Nirasaki Arts Hall. Presentations were made on environmental

its environmental impact. In preparing these roadmaps,

technologies and a poster area was also set up, enabling the

Product-related Initiatives for the Environment
The EXPEDIUS™ + Cleaning System Reduces
the Amount of Deionized Water Required

Cleaning systems use deionized water (DIW)1 during the wafer rinsing
process. Even in the stand-by mode, when wafers are not being

Reducing Emissions by Downsizing Spinners
In addition to the high controllability required forprocessed, a small amount of DIE is continuously consumed to control

miniaturizing and enhancing the performance of devices,
the CELLESTA+ single wafer cleaning system enables a

the generation of bacteria in the DIW pipes. Reducing the amount ofsmaller footprint (installation area) with 12 spinners2 by

DIW used when the system is in stand-by mode has therefore become

reducing the size of the process chambers. Wafer spin

an issue. We conducted a survey to identify the time it takes for bacteria

chambers require spatter control of process liquids andto be generated after the DIW supply has been stopped, and based on

atmosphere control, but the input and output of large

the survey results, we have adjusted the system so that DIW is supplied
only as long as is necessary to control the generation of bacteria. As aamounts of air are necessary to control these duringhigh-speed spin processing. The CELLESTA+ uses theresult, we have been able to reduce the amount of deionized water used“rotational cup concept,” in which the spin chambers rotate

by approximately 70%.

in synchronization with the wafers. This provides not only a
50% reduction in exhaust air compared with conventional
Stand-byvalveHigh flow
valvesystems but also enables downsized process chambers andenhanced productivity per unit area and C.o.O.3(%)

Approx. 50%
reduction in exhaust

100

volumes achieved
through the use of arotational cup.

50

Approx. 70% reduction

in deionized water supply achieved
during stand-by compared toconventional equipment through theuse of water conservation/intermittent operation.

1 DIW (deionized water): used in semiconductor manufacturing processes to clean
wafers and in the manufacture of pharmaceutical products. Deionized water isextremely high–purity water, theoretically close to 100% pure water, containing
virtually no impurities such as metal ions or microorganisms.

16

TOKYO ELECTRON

Environmental and Social Report 2010

0
Conventional
equipment

CELLESTA+

2 Spinner: a device that creates thin films through centrifugal force by
rapidly rotating flat and smooth base materials
3 C.o.O (cost of ownership): total expenses required for installing,
operating and managing facilities/equipment, etc.

divisions and departments to engage in a lively exchange ofconsumption of our products in close cooperation with theseideas and information.

partners. In addition, as one measure to reduce device energy

Product-related Initiatives
for the Environment

The TEL Group’s Technology Symposium

consumption, we are working to make measuring the amounts

Energy-saving Measures for Productsof energy consumed by devices that use electricity, water, dry

Our technology development efforts to reduce product energy

air, cooling water, and exhaust heat, as well as supplementary

consumption focus on the following five areas: (1) reducing

devices (e.g. vacuum pumps and cooling equipment) moreaccurate by following the SEMI S235 guidelines.

the energy used by the product itself; (2) reducing the energy
used by peripheral devices; (3) managing the product in ansaving manner (planned operation and proper management).
Energy-saving management of the clean room necessarily
involves our cooperation with customers and facility
manufacturers. We will work to further reduce the energy

Thermal Processing System that Reduces Greenhouse
Gas Emissions Using Fluorine (F2) Cleaning Technology

In semiconductor/FPD manufacturing processes, PFC6 gases such as NF3 andSF6 are widely used in etching and CVD chamber cleaning processes. These

MANAGEMENT REPORTCELLESTA™ Single Wafer
Cleaning System

4 Clean room: a room in which dust floating in the air is controlled at or
below a defined cleanliness level and in which the temperature/humidity
is maintained at a certain standard temperature. Dust can easily cause
defects in precision machinery or cause errors in operation, and so clean
environments are vital to ensure that the machinery operates correctly.
5 SEMI S23: guidelines for energy conservation for semiconductor
production equipment issued by Semiconductor Equipment andMaterials International (SEMI), an international industry organization for
semiconductor/FPD production equipment and material manufacturers

HIGHLIGHT

energy-saving manner; (4) reducing the energy used in theclean room4; and (5) managing the clean room in an energy-

gases have a global warming potential (GWP100)7 more than 10,000 times
higher than CO2 and their impact on global warming is posing serious concern.
In response to this, we have developed dry-cleaning technology that utilizes
it in our vertical LPCVD (low-pressure chemical vapor deposition) systems. In
addition, compared with conventional wet cleaning technologies, this fluorinecleaning technology not only reduces downtime but also extends chamber life

EHS REPORT

fluorine (F2) gas, which has a GWP of zero, instead of PFC gases, and we use

by eliminating quartz damage, thereby contributing to further reductions inenvironmental impact.

[Features of CELLESTA+]
1. High throughput: maximum 333 wafers/hour
3. Enables built-in chemical supply circulationunit
4. TEL original IPA drying technology enables
watermark-free drying

Cleaning gas

Global warming potential(GWP100)

Lifetime (years)

SF6
NF3
F2

23,90010,800
0

3,200
740
0

SOCIAL REPORT

2. New spinner model: 12 process spin chamber

Global Warming Potential of Cleaning Gases Used in
Semiconductor/FPD Manufacturing

5. New atomized spray (AS3) for high particle
removal efficiency (PRE) with fine patterns
and non-damaging cleaning
6. Utilizes the highly reliable CLEAN TRACK™
LITHIUS Pro™ coater/developers handlingtechnology

6 PFC (perfluorocarbon): a fluorocarbon compound containing absolutely no hydrogen or
chlorine that is one of the six gases subject to restriction under the Kyoto Protocol. Although
PFCs do not harm the ozone layer, their greenhouse effects are several thousand times thatof CO2.
7 GWP100 (Global warming potential): a measure of how much impact a greenhouse gas has
on global warming. It is a relative scale that considers a 100-year time span when the GWP
for CO2 is 1.

17

Product-related Initiatives for the Environment

Initiatives Related to Regulated
Chemical Substances in Products
Reducing the Use of Regulated
Chemical Substances in Equipment

Construction of a Management System
for Regulated Chemical Substances

Against a backdrop of growing concern over the impact that

The TEL Group operates a chemical substances management

harmful substances contained in parts and materials have on

system that can be used to register and view information on

the environment and ecosystems, many countries are working

the use of chemical substances according to individual parts.

to regulate the use of these substances in automobiles

This system allows us to check easily whether parts to be

and electrical products. The TEL Group is also introducing

used in our products contain regulated chemical substances

measures to reduce the amount of regulated chemical

or not, and control the manufacture or shipment of products

substances contained in its products. One of the best-known

containing chemical substances regulated by the EU/China

regulations on chemical substances is Europe’s RoHS
Directive1, which came into effect in July 2006. Although

RoHS and other laws.

semiconductor and FPD production equipment is currently
exempt from the directive, the Group is taking proactive

Activities to Reduce the Use of Other
Chemical Substances

measures to comply with it.

Most nations have begun to implement the Globally

We have already met all of the requirements for China’s

Harmonized System of Classification and Labelling of

RoHS, which was issued in March 2007 and applies to TEL’s

Chemicals (GHS)3 based on the recommendation of the United

products.

Nations. In order to comply with this system, the TEL GroupIn order to meet regulatory requirements in a prompt

has begun to obtain chemical substance safety informationmanner, the TEL Group established a Chemical Substances(e.g., MSDS) classified and created in accordance with theSteering Team comprising representatives from TEL’s

GHS and has not only made this information available within

headquarters and manufacturing subsidiaries. The teamthe Group, but has also begun distributing labels for chemical

shares essential information and investigates the use of

substance containers.

regulated chemical substances in our products in cooperation

In Europe, companies will be increasingly required towith our suppliers, and also introduces alternatives to replace

fulfill their responsibilities as manufacturers and follow theregulated chemical substances. In addition, the team uses
a dedicated database to manage the chemical substancesprinciple of taking precautions, under regulations such as
REACH4, the EU’s New Batteries Directives5, and the new CLP6

contained in units and the parts used in our products. In fiscal

regulations. All TEL Group departments are making concerted

2007, we voluntarily developed a timetable to phase out theefforts to comply with these regulations, from productuse of regulated substances used in our products (excluding

development, design and manufacture to procurement, quality

certain products) subject to EU RoHS standards. From theassurance, and environmental and safety performance. We

second half of fiscal 2009 successively, we began shipping

have started surveying substances of very high concern

equipment containing fewer regulated chemical substances,(SVHC) regulated under REACH and are providing information

which we define as products containing 98.5% or more parts

on parts that have been found to contain 0.1% or higherthat meet the EU RoHS standards.

percentages of these substances.

1 RoHS: Restriction of the use of certain Hazardous Substances in Electricaland Electronic Equipment

Chemical Substances to Be Reduced

We will also explore the optimal management of chemical
substances by participating in the activities of JAMP7 andother forums.

First Priority
Cadmium

Pigments, stabilizers, and resins

Hexavalent chromium Chrome plating
Lead

Solders, paints, electrical wire coating,and free-cutting metal

Mercury

Batteries and fluorescent lamps

PBBs

Resin parts

PBDEs

Resin parts

Second Priority
Substances designated as Level A substances in JIG2(The TEL Group has already implemented measures formany of these substances)
2 The JIG (Joint Industry Guide for Material Composition Declaration forElectronic Products) was prepared by Japanese, American and European
private trade associations. The guide lists the chemical substances for whichconservation measures should be implemented. It classifies the substances
into Level A and Level B; 16 substances are listed as Level A substances,including cadmium, hexavalent chromium, lead, mercury, PBBs and PBDEs,
while more than 400 substances are listed as Level B substances.

18

TOKYO ELECTRON

Environmental and Social Report 2010

3 GHS (Globally Harmonized System of Classification and Labelling ofChemicals): a globally harmonized system related to classification andlabeling of chemicals agreed by the United Nations that is intended toharmonize and integrate various countries’ classification standards forchemical harmfulness and toxicity, labeling and MSDS details.
4 REACH (Registration, Evaluation, Authorization and Restriction ofChemicals): a set of regulations pertaining to the registration, evaluation,authorization and restriction of chemicals. For products containing SVHC
(Substances of Very High Concern) in particular, manufacturers are
required to provide information on the SVHC content of their products aswell as information to ensure the safe use of the products.
5 The EU’s New Batteries Directive: regulates the collection and recyclingof batteries, requiring batteries to be labeled with a designated recycling
mark to facilitate collection and recycling.
6 New CLP (EC No 1972/2008 Regulation on Classification, Labelling andPackaging of Substances and Mixtures): EU regulations concerning theclassification, labeling, and packaging of chemicals and mixtures
7 JAMP (Joint Article Management Promotion-consortium): promotes
appropriate management of chemicals contained in products and smooth
information distribution within the supply chain.

Approach to Addressing Environmental
Impact Stemming from Logistics
The TEL Group has established a Logistics Working Team andthe relevant divisions and departments have created actionplans and are implementing them.
In April 2006, Japan’s Act Concerning the Rational Useof Energy was revised and regulations concerning logistics

compared with the base year of fiscal 2008, we will continue

were strengthened with the aim of reducing global warming.

to promote modal shifts to prevent increases in CO2 emissions

Accordingly, there is now greater demand for reducing thein the future as our sales and shipments rise. The marine

environmental impact of logistics operations. In response,transport rate for export-related logistics activities in fiscal

the TEL Group has been actively reducing the environmental

2010 was 37%. We estimate that increasing marine transport

impact caused by the transport of its products. For example,
we are promoting a modal shift8 for domestic and overseas

to 60% of our total transport needs would enable us to meettransport and adopting packaging methods with lessto marine transport and optimize our packaging methods.

Product-related Initiatives
for the Environment

Logistics-related Initiatives

our goal; we will therefore encourage our customers to switch

environmental impact. We will continue these environmental
measures in logistics in order to fulfill our environmental
8 Modal shift: a shift in the mode of transportation (e.g. switching fromconventional freight transportation by truck or aircraft to marine and railtransportation, which have a lower impact on the environment)

CO2 Emissions from Logistics Operations inJapan and Trends in Marine Transport Rates
(t)

4,712

5,000

(%)

15.7
2,956

2,500

In fiscal 2010, TEL transported 11.96 million ton-km of

0

freight in Japan (on a non-consolidated basis), resulting in

2,294

10

5.4

5

2.7
’08

CO2 emissions

’09

’10

0

(FY)

Marine transport rate

2,294 tons of CO2 emissions. Due to reductions in production
and shipment caused by decreased sales, this was a reduction

Green Packaging

The marine transport rate for domestic logistics activities in

Most of the TEL Group’s products are precision machines,

fiscal 2010 was 5.4%, down from 15.7% in fiscal 2009. This iswhich means they require special packaging to maintainthought to have resulted from decreases in total actual freight

precision and keep them in a clean condition. We use special

as well as in the quantity of shipments sent via related routes.
Modal shifts helped us to reduce CO2 emissions from ourwooden frames and steel-reinforced corrugated cardboard as

domestic logistics activities by 106 tons.

for packaging, we have begun using reusable corrugated

Our export-related logistics activities emitted

packaging materials. As a way to reduce the resources usedcardboard boxes when shipping large parts to customers

approximately 140,000 tons of CO2 in fiscal 2008, 30,000 tons
in fiscal 2009, and 29,000 tons in fiscal 2010. CO2 emissions

inside Japan. After the parts are delivered to customers, thedecreased in fiscal 2010, due in part to decreases in sales.

also collect casters used for moving products and bring them

Although CO2 emissions per unit of sales have decreasedback to our plants for reuse, thereby reducing resource usage.

EHS REPORTin ton-km of approximately 30% compared with fiscal 2009.

MANAGEMENT REPORT

Reducing the Environmental Impact
Stemming from Logistics

15

HIGHLIGHT

commitment.

reusable packaging materials are returned to us for reuse. We

At our new plant in Taiwa-cho, Miyagi Prefecture, which is currently under construction(as of August 2010), we are considering introducing a more environmentally friendly

New
plant

SOCIAL REPORT

Logistics Measures at Our New Plant

New
plant

cooperative distribution system for delivering procured material. We plan to introduce
this system to more than 100 of our suppliers for delivering materials to the new plantthat will develop and manufacture etch systems. We estimate that this system will enable us to reduce CO2 emissions from logistics
activities by more than 50% compared to having materials delivered individually to the new plant. The cooperative delivery system isalso expected to bring cost reductions and enable products to be delivered even more swiftly to our customers. After evaluating theoutcome at the Miyagi Plant, we will consider expanding the use of this system to other plants.

19

Plant and Office Initiatives for the Environment
Through the careful and sustained efforts of each of our employees, the TEL Groupis proactively undertaking various initiatives to help prevent global warming, conserve
resources, and reduce waste.

Measures to Help Prevent
Global Warming

CO2 Emissions from Energy Consumption
(t)

7,405

110,695 113,169 116,077
8,335
7,335
6,449

80,000102,977

104,246 105,834 107,742

40,00016.4

110,382

120,000

Reducing Energy Consumption
In accordance with Tokyo Electron’s Environmental
Commitment, the TEL Group aims to achieve a 50% reduction
in CO2 emissions per unit of sales1 by fiscal 2015 comparedwith the base year of fiscal 2008. In order to achieve thistarget, during the second half of fiscal 2010, measures weretaken at our manufacturing sites to enhance clean room

22.8

0

’06

energy efficiency in order to reduce energy consumption,

13.0

12.5

’07

’08

(%)

90,665
8,994
81,671

30
20

21.7

10

’09

’10

0

(FY)

CO2 emissions (Japan)
CO2 emissions (overseas)
Energy use per unit of sales

and investments were made with the expectation of achieving
a reduction in CO2 emissions of approximately 3,000 tons.

Breakdown of CO2 Emissions fromEnergy Consumption
2% 1% 1%
3%
3%

Meanwhile, efforts made at our offices include installinghigh-efficiency lighting systems, appropriate control of
air-conditioning temperatures, and reducing the power
consumption of office equipment. Outside Japan, Tokyo

Electricity
Heavy oil
Kerosene

Electron U.S. Holdings, Inc. is implementing environmental
measures that include purchasing green

FY2010

Processed natural gas
LPG
Light oil, others

90,665 telectricity from sustainable sourcesof energy such as wind power. In
February 2010, our Tohoku Plant (Tokyo

90%

Electron Tohoku Ltd.) was awarded the
Chairman’s Prize by the Tohoku Seven
Tohoku Plant was awarded theOutstanding Energy-Efficient
Factory Prize.

Electricity Consumption

Prefecture Committee to Promote
the Use of Electrical Power for an
Outstanding Energy-Efficient Factory.

Energy Consumption and CO2 Emissions(million kWh)

300

258.8
19.2

270.1
9.9

249.6
12.5

231.8
16.0

200
260.2

Regarding energy consumption in fiscal 2010, our electricity
usage declined by approximately 7% and heavy oil usage

263.7
16.5

247.2

237.1

239.6

100

215.8

dropped by approximately 8% compared with fiscal 2009 due
to energy conservation measures conducted in all regions anda decrease in production activities. CO2 emissions from energy

0

’06
Japan

consumption decreased significantly by more than 20% due

’07

’08

’09

’10

(FY)

Overseasin part to an improvement in CO2 emissions factors by ourGreenhouse Gases Other Than fromEnergy Consumption (Japan)

electrical power provider. CO2 emissions (energy use) per unitof sales decreased by more than 5%.
We will continue with our activities so as to minimize
increases in CO2 emissions when production increases.

(t -CO2 2)

21,00630

20,00015,888Reducing the Use of Greenhouse Gases
Other than CO2
In process development of products and evaluatingprocess (e.g., dry etching and cleaning processes) we use

770
12,643

10,6104,681

hexafluoride (SF6), which are greenhouse gases. In fiscal 2010,
we used 17,743 tons of greenhouse gases (CO2 equivalent). We

3,236

and made partial adjustments to our figures.

0TOKYO ELECTRON

Environmental and Social Report 2010

8,486

11

12,231

4,350
3,506

3,607
1,620
’06
’07
HFCs
PFCs

1 CO2 emissions (energy use) per unit of sales: CO2 emissions from energy consumption/sales
We use adjusted emission factors for individual electric power providers for the emission factor forelectricity consumption in Japan in fiscal 2010. For the emission factor for electricity consumption
overseas, we use estimated factors calculated by the Federation of Electric Power Companies of Japan
based on values published by the International Energy Agency (IEA).

20

13,863

3,106

10,000hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur

revised our calculation methods for SF6 and PFCs in fiscal 2009

17,743
165

3,204

4,052

3,045

2,580

’08

’09

SF6

3,926
1,421
’10 (FY)

Others2 t-CO2: a unit indicating the amount of CO2 and othergreenhouse gases emitted, absorbed, or stored, whichis converted to the weight of CO2 with an equivalentgreenhouse effect.

Our Approach to Resource
Conservationwater. In fiscal 2010, water consumption fell by approximately

The TEL Group is working to minimize our use of limited

have also installed automatic faucets in restrooms and otherresources. Specifically, we are reducing the use of copierfacilities. These touch-free automatic faucets prevent water

paper and stationery and implementing green procurement

waste by automatically shutting off the supply when the user’s

practices, giving preference to environmentally conscious

hands are removed from the sensor range.

15%— mainly because of lower production. Our plants

products.
We have also replaced printer toner cartridges for use in
our offices with cartridges made from recycled materials andcooperated with the manufacturers in recovering end-of-life
cartridges. At some offices, we have established an intranet-

Water Consumption(Thousand m3)

1,200

based system, under which unused stationery can be used byother departments, encouraging the reuse of resources acrossthe organization. In addition, active efforts are made to donate

800

circulars. As a result, the Group’s total use of copier paper

599

1,180
48

2

1,139
65

599

1 967
49

575

1

504

HIGHLIGHT

copy at a reduced size, and to digitize information and internal

111
22

506
400

Efforts to Reduce the Use of Paper
Our employees are encouraged to use duplex copying, to

1,161
1,095
115
92

excess office supplies, shelves, and other unused items tolocal government bodies and non-profit organizations.

0

382

429

’ 06

’ 07

Industrial water
Overseas use

531

’ 08
Tap water

498

413

’ 09

’ 10

(FY)

Groundwater

which represents a reduction of more than four million sheetsin the year. Moreover, since fiscal 2010 we have expanded thescope of data collection for our activities by adding data frombusiness sites in Japan.
We are encouraging the use of environmentally friendly
paper and introducing resource-conserving activities byintroducing products such as paper cups made from abamboo-based material. We are also working to raisebring their own cups to work.

Tokyo Electron and ONYONE Inc. have jointly
developed a revolutionary clean suit (dust-resistantclothing) that is both comfortable and dust-resistant.
In order to develop a work suit that is comfortable

Efforts to Reduce Water Consumption
To reduce water consumption, our manufacturing plants
have installed water recirculating systems to reuse coolingto wear, especially while working on
equipment manufacturing in clean

EHS REPORT

employee awareness so that they use fewer paper cups andJoint Development of Clean
Suits That Are Both Comfortable
and Dust-resistant

MANAGEMENT REPORT

in fiscal 2010 dropped by more than 10% over fiscal 2009,

field service bases and training centers to that for our main

Plant and Office Initiatives
for the Environment

Initiatives to Conserve Resources

rooms, the materials, design, andsewing techniques used for theclothing were reviewed and altered.

Copier Paper Consumption
100,000
85,852
16,038dramatically minimized the discomfort

94,127
16,135that conventional clean suits impose

84,419on wearers in a number of ways that

13,483include controlling the temperature andhumidity inside the clothing, providing

50,00069,814

77,99270,936more room in the suit, and making it
30,0098,647
21,3620’06
Plants’ 07
Office facilities’ 08

SOCIAL REPORTThe newly-developed suit has(Thousand sheets)’ 09

25,721
11,508
14,213’ 10 (FY)easier to put on and take off.
With this new suit, it is anticipatedthat air-conditioning temperatures in clean
rooms can be set 2ºC higher in summer,
which will contribute to saving energy.

21Plant and Office Initiatives for the Environment

Initiatives for Reducing Waste
Our Approach to Waste Reduction
and Recycling

Breakdown of Waste (Japan)

The TEL Group is working hard to reduce and recycle its
waste. We work according to a clear policy: minimize waste

1%

first and foremost, recycle whatever waste is generated to the4%
6%greatest extent possible, and dispose of non-recyclable waste

7%

in a proper and responsible manner.
In recent years, landfill costs have surged due to a

9%
FY201010,090 t

12%

shortage of sites, which means that reduced waste also61%

leads to reduced costs. We separate recyclable waste from

Liquid waste
Metallic/product waste
Plastics
Paper
Wood scraps andpackaging materials
Drink containers
Othersnon-recyclables, use new manufacturing processes that do
not involve waste generation, monitor the qualifications ofcontract waste disposal companies, periodically review final
waste disposal practices, and also focus on educational

Zero Emissions

activities related to the sorting of waste and other topics.

The TEL Group defines plants where less than 2% of waste

Some business sites have begun using electronic manifests1
to ensure proper management of waste materials.

generated is incinerated or put into landfill as “zero emission

1 Electronic manifest: a system in which the flow of industrial waste is
managed via a communications network linking information processing
centers, companies generating the waste, waste collecting andtransporting companies and waste disposal companies, instead of theconventional paper-based control manifest.

plants.” In fiscal 2010, all of our manufacturing plants inJapan achieved zero emissions as the result of efforts torecycle and reduce waste, and we will continue to promote
zero emission activities across the entire group.
Recycling Rate for Industrial Waste fromTEL Group Plants in Japan

Volume of Waste Generated andRecycling Rates
In fiscal 1999, the TEL Group set the target of increasing its
average recycling rate2 to 95% by fiscal 2006. As a result of
recycling measures, we achieved a recycling rate of 96.1% in
fiscal 2005, and 97.3% in fiscal 2010. Compared to the fiscal

Plant

Tohoku Plant
Miyagi (Matsushima) Plant
Yamanashi Plant (Hosaka area)
Yamanashi Plant (Fujii area)

2009 figures, incinerated and landfill waste fell by 4.2% andKoshi Plant

total waste (including recycled waste) decreased by 6.3%. The

Ozu Plant

Recycling rate

98.6%
99.8%
100%
100%
100%
100%

largest percentage of waste generated by the Group comesfrom liquid waste resulting from the chemicals used in our
product development and evaluation processes, but 99% of
this liquid waste is currently being recycled.

Environmental Training Video
Recycling Rate and Generation of
Incinerated and Landfill Waste (Japan)
(t)

96.4

500

469

97.3

97.3

97.0

97.3

Our Yamanashi Plant has produced an environmental
(%)

100

environmental education by366

showing basic environmental
288

300

276

50

200

actions such as turning
off electricity (switchinglights off at lunch time andswitching office equipment

100
0introduces the Yamanashi Plant’s energy conservation
and waste management activities. The video aids our

414

400

training video for newly assigned employees. This video

’06

’07

Incineration and landfill

’08

’09

’10

0

(FY)

Recycling rate

2 Recycling rate: recycled amount ÷ amount of waste generated/100

off at the end of the businessday), maintaining set airconditioning temperatures,and encouraging the use of
duplex printing, as well as
rules for waste disposal.

22

TOKYO ELECTRON

Environmental and Social Report 2010

Environmental training
video

Our Approach to the Management ofChemical Substances

The TEL Group is currently storing two decommissioned

The TEL Group uses chemical substances mainly inand secure manner in accordance with legal requirements.

transformers and four capacitors that contain PCB in a strict

developing and manufacturing products. In developing

Handling of Substances Regulated as Class I
Designated Chemical Substances under
the PRTR Act (Japan)

products, whenever we adopt new chemical substances thathave not been used before or use chemical substances ina way that is different from their traditional usage, we first(kg)

19,761

20,000closely examine the development facilities and methods,

Plant and Office Initiatives
for the Environment

Management of Chemical Substances

4,578

and then assess the environmental and operational risks
associated with the use of the substances. We do not begin

15,000

1,221

using the substances until all the necessary measures have
10,000been implemented. We are also replacing dangerous and

8,188
577

harmful chemicals used in the manufacturing process withsafer substances.

9,693
1,607
1,459
1,200

6,285
847
1,225

4,118

5,021

5,427

3,977

’06

’07

’08

’09

’10

236

(FY)

Hydrogen fluoride and its water soluble salts
Ethylene glycol
XyleneOthersAmounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof(PRTR3 Act), we identify the amounts of regulated substances

HIGHLIGHT

4,811
0

In accordance with the Act on Confirmation, etc. of Release

2,108
1,359
3,962

2,800

5,000

Compliance with the PRTR Act

9,844

12,450Material Balance of Chemical Substances
Regulated under the PRTR Act

used, discharged and transferred, and rigorously control thesesubstances. This applies particularly to hydrogen fluoride,

Handled: 6,285 kg/year

glycol, which is primarily used as a refrigerant for cooling water.
After use, hydrogen fluoride and ethylene glycol waste is either
disposed of by an external contractor or disposed of in an
approved manner within our premises. In addition, in accordancewith the revised PRTR Act, in April 2010 we began identifying the

Waste:

2,896 kg/year
Transferred
to sewage:

Released into
the air:

0 kg/year

amounts of newly regulated substances used, discharged andOn-sitelandfill:

0 kg/year

transferred and we will continue to properly manage all the risks

Removed:

0 kg/year

Released into
water:

0 kg/year
2,073 kg/year

associated with the use of chemical substances.

MANAGEMENT REPORT

which is primarily used for cleaning test wafers, and ethylene

Recycled:

1,285 kg/year

Based on the Act on the Proper Treatment of PCB Waste andProducts: 31 kg/year

the Waste Disposal and Public Cleaning Acts, the TEL Group
reports annually on the storage, management, and disposalof waste containing polychlorinated biphenyl (PCB) to thegovernor of the prefectures in which our plants are located.

3 PRTR (Pollutant Release and Transfer Register): under the PRTR system,
the use of chemical substances that may be hazardous to human healthand the ecosystem, their release into the environment, and their transfer(contained in waste) outside of the business premises are identified,tabulated, and disclosed.

EHS REPORTPCB Storage

Input and Output (FY2010)
Change fromprevious year

231.88 million kWh(-7.1%)

Total product shipment 13,105 tons(-12.5%)Gas

1.17 million m3(-2.2%)

CO2 emissions fromenergy consumption 90,665 tons(-21.9%)Fuel

1,976 kl(-14.8%)NOx emissions

10.1 tons(-9.0%)

Waste water

957,000 m3(-15.1%)

Water

967,000 m3(-15.1%)

Waste

10,090 tons(-6.3%)

Electricity

Chemical substances(regulated as Class I designated
6.2 tonschemical substances under the PRTR Act)

Paper (copier paper)

102 tons

The Tokyo
Electron Group(Japan and overseas
business sites)(-36.1%)

Recycled amount

9,814 tons(-6.4%)(-15.0%)

Amount of waste
incinerated or put in landfill 276 tons(-4.2%)SOCIAL REPORT

Change fromprevious year

23

Health and Safety Initiatives
With health and safety positioned as a vital foundation of its business activities,
the TEL Group promotes “health and safety first” from a range of aspects.

Our Approach to Health and Safety

Preventing Occupational Accidents

As part of our Corporate Social Responsibility (CSR) activities,

In fiscal 2010, the TEL Group achieved an 18% decline fromthe TEL Group places great importance on ensuring that our

fiscal 2009 in the number of occupational accidents (excluding

customers, employees, and everyone else involved in its

minor accidents and injuries that were incurred whilebusiness can work in a safe workplace environment, use ourcommuting), due in part to the decline in product shipments,

products safely, and enjoy good health.

although this result fell short of the 30% year-on- year

In fiscal 2010, two experts in system safety—Professor

reduction goal.

Noboru Sugimoto and Associate Professor Takabumi Fukuda

An analysis of the accidents that occurred in fiscal 2010of the Nagaoka University of Technology Graduate Schoolshows that approximately 70% occurred on worksites relatedof System Safety—were invited to instruct our designers
on the basics of equipment safety design. Based on actual

to our group plants. The most common types of occupational
accidents were caused by ergonomics1, work on highaccidents, Professor Sugimoto discussed “intrinsically safe

structures, and work near large openings in the floor. Of these,

designs—which all designs must be—and the principles

the largest number of accidents remain ergonomics-related,

and responsibilities designers need to understand and fulfill

an area which has been under scrutiny since fiscal 2009.

in terms of safety,” while Associate Professor Fukuda talked

We will strengthen safety measures promptly to prevent theon “approaches to international standards and system safety

reoccurrence of this type of accident and improve the situation.

from the standpoint of recent global trends.” Both of these1 Ergonomics: a scientific approach that researches both human physicaland psychological functions as well as properties and designs to develop
equipment and environments to match these. Ergonomics aims to lighten
the burden on workers while at the same time enhancing safety and work
efficiency.

insightful lectures deepened our designers’ understanding ofsafety issues. We intend to continue organizing these lectures
and will continue to develop the content.

Number and Frequency of Occupational Accidents(Number of occupational accidents)(Frequency)

47

50

2.0

39
28
23

25

0.40
0.32

0

’06

0.37

0.39

0.18

0.19

’07

’08

0.48
0.29
’09

1.0

19
0.46
0.19
’10

(FY)

0.0

Number of occupational accidents that occurred in the TEL Group
Japan’s electromechanical manufacturing industry
Reduction target
Tokyo Electorn Group

Lecture on the basics of equipment safety
design* The number of occupational accidents in fiscal 2001 is taken as 100.
* Frequency of occupational accidents is the number of occupational accidents
per one million working hours.

Safety Awareness Training
Tokyo Electron FE Ltd. is providing safety awareness training at major Field Engineer(FE) service bases. These practical training sessions were first held at its Fuchu Officein April 2010, and since May have been expanded to other field service bases in Japan.
These activities aim to drive home to engineers the importance of workplace safety
and prevent occupational accidents by providing them with simulated experiences of
workplace dangers. Permanent training facilities/equipment for this safety program
have been installed at the Fuchu office, which has started to carry out activities

Safety sensitivity training

systematically, including developing simplified moveable training tools for use in training at FE bases as well as dispatching trainers.
The training program covers broad areas ranging from the wearing of safety belts during work on high structures, awareness ofphysical loads suspended in the air, to awareness of the risk of electrocution.

24

TOKYO ELECTRON

Environmental and Social Report 2010

Since July 2000, the TEL Group has been promoting theconcept of safety education throughout the entire Group. We
have produced a manual as a tool for basic safety educationthat will be provided to Group employees. More advanced
safety education is provided for our technical employees who
work in clean rooms, using the Semiconductor Equipment
Association of Japan (SEAJ) recommended service safety

Training Using Videos

training manual compiled by SEAJ. Following the guidelines

The TEL Group has created videos for use in safety training toin this manual, hands-on training is included in the firstprevent ergonomic accidents caused by factors such as thetraining session.

increased unit weight of equipment due to increased size andIn fiscal 2010, refresher safety training comprised a

Health and Safety Initiatives

Safety Education

reduced work space. The aim of these training videos is tovariety of themes including controlling dangerous energy(importance of carrying out lockout-tagout2), effective use of

ensure that workers maintain a natural posture while installing

protective gear for the head, hands and feet, safe handlingunderstanding of worker comfort, safety, and product qualityof cutters and other hand tools, as well as risks posed by

improvements from an ergonomic perspective. In response

automatic guided vehicles used at our customers’ sites. Theseto the large percentage of ergonomics-related accidents thatsafety refresher courses are conducted online; this allows ourhave occurred over the past few years, the TEL Group uses

employees to take the course at their convenience and allows

this video training as part of its efforts to keep ergonomic

their progress to be monitored.

risks low, remind workers of the importance of safe, user-

equipment or performing maintenance as well as an enhanced

In order to prevent the reoccurrence of accidents that

HIGHLIGHT

friendly equipment, and ensure safety.
have actually occurred during work on high structures or nearlarge openings in the floor, and involving heavy lifting gear
accidents using 3D images. This visual presentation helps us
to check the management system at the time of the accident,
Refresher training using
the TEL website

the work load status of the injured, and whether or notadequate communication has taken place. These videos are
becoming an integral part of our safety training.

MANAGEMENT REPORT

or electricity, we have created videos that reproduce actual

2 Lockout-Tagout: to prevent unintended actuation of a power switch on
equipment by using tools such as a key to put it out of commission(lockout) and a tag to indicate that use of shutoff or similar equipment isprohibited (tagout).

EHS REPORTVideo on preventing ergonomicsrelated accidents
Video reproducing accidents using
3D images

SOCIAL REPORTCPR and AED Training
Cardiopulmonary resuscitation (CPR) and automated external defibrillation (AED) areboth effective methods of saving lives in the case of cardiac arrest, including certain
cases of sudden heart attacks, water accidents or electrocution. The TEL Group invites
external specialists to provide employees with periodical CPR and AED training.
Feedback from participating employees includes, “Many more people can be saved if
more people are able to use CPR and AED in an emergency” and, “It will help if a family
member meets with an accident.”

New employees undergoing CPR/AED
training

25

Relationship with Customers and Suppliers
The TEL Group sets honest policies for product quality and procurement aimed at satisfying
customers and enhancing growth with suppliers.

Approach to Product Quality

Approaches to Procurement

The TEL Group aims for product quality that generates

The basic philosophy of the TEL Group includes “providing

customer trust in our products and services throughhigh-value products and services around the world that help

continuous provision of products and services thatpeople to lead healthy and enriched lives, and demonstrating

consistently satisfy customers. In order to ensure that ourconsistent leadership as a world-class company by creating

manufacturing systems do not produce defective products,

hope for the future and addressing environmental problems.”

the TEL Group has acquired ISO9001 certification and works

In order to realize this philosophy, it is vital that we build

to ensure that our product quality management systemstrong partnerships with our suppliers.

operates appropriately.

Based on this basic philosophy, we have established the

TEL’s Commitment to Quality
1. Quality is our top priority
TEL’s goal is to achieve the highest quality in the world.

2. Product quality awarenessAll employees must understand the importance of product quality tofollowing Basic Procurement Policy and continue to work
proactively to fulfill its goals.
Procurement Policy of the TEL Group
1. Partnerships

TEL’s business. Quality must always be given priority, even if profits are

2. Cost reduction

temporarily affected. That is how we build long-term trust, and contribute

3. Lead time reduction

to society.

4. Coexistence with the global

3. Observing company rules
Employees must observe the rules stipulated by each TEL organization

environment

6. Compliance with legal andsocial codes
7. Product quality/safetyassurance
8. Information management

5. Global procurement activities

to ensure that quality remains our top priority and continues to improve.
These rules and regulations are reviewed regularly to ensure that they
are appropriate and effective in our effort to improve quality.

4. Employees responsibilities

Communicating with Suppliers

Employees are responsible for making product quality their top priority.

The TEL Group not only uses EDI* for procuring parts andThey must remain aware of potential problems, actively identify andmaterials, but also operates its own website as a two-way tool

analyze them, and take necessary action for improvement.

5. Managers’ responsibilities
Managers must monitor on-site conditions at all times, spot problem
areas, and give instructions for improvement. Managers must ensurethat their subordinates have a good understanding of the overall TEL

for communicating with suppliers. The website can be linked
to the internal systems of both the TEL Group and the supplier.
In order to strengthen our supply chain, the TEL Groupbusiness environment, including customer’s requirements, and must

has launched joint projects with our suppliers, including

make employees aware of the importance of enhancing the quality of allannual meetings with numerous suppliers. The fiscal 2010

TEL products and services.

meeting featured the theme of “Aiming at medium- to longterm growth together in a significantly evolving market,” andQuality Assurance Systempresentations and discussions were held on growth strategies

The TEL Group has established a quality committee

and environmental initiatives under this topic. This event

comprising heads of the quality department of each businesshelped to reaffirm the importance of the supply chain.

unit. The committee meets regularly to oversee efforts toenhance product quality and address priority issues, thus
promoting improvement and enhancement of product quality* EDI (Electronic Data Interchange) is a framework to electronicallyexchange information related to commercial transactions amongcorporations in a unified standard format.

for the entire TEL Group.
Framework for TEL’s Product Quality System
President of Tokyo Electron

Quality
Promotion
Department

Executive Vice Presidents of Tokyo Electron(General Manager of the Quality Division)

Presidents/GMs of TEL Group companies
TEL Group business units
Heads of quality assurance departmentsin the TEL Group
Quality Committee

26

TOKYO ELECTRON

Environmental and Social Report 2010

Suppliers are invited to participate in meetings.

Relationship with Shareholders and Investors
The TEL Group emphasizes fair, equitable, and timely disclosure of information to anddialogues with shareholders and investors, both in Japan and overseas.

Communicating with Shareholders
and Investors

Approaches to Information Disclosure

Annual Shareholders’ Meeting

Tokyo Electron is committed to disclosing information about the

To encourage lively discussions at annual shareholders’Company in a fair, prompt and accurate manner, to ensure thatmeetings and to encourage them to exercise their voting

all stakeholders, including shareholders and other investors, canrights, invitations are sent out early—more than threeobtain an accurate, in-depth understanding of the Company and its

weeks prior to the meeting—and for the convenience of ouractivities, and evaluate the Company’s corporate value appropriately.

shareholders, we work to avoid the date when most major

The Company also solicits feedback from its stakeholders as part

Japanese companies hold their shareholders’ meetings. Tokyoof its information disclosure activities, and uses the feedback as aElectron participates in the web-based voting platform forpoint of reference to guide corporate management.

institutional investors operated by Investor Communications
Japan Inc. (ICJ). To supplement the above shareholder
meeting related initiatives,

If it is subject to the marketable securities listing regulations

Tokyo Electron’s website(material information), Tokyo Electron will release information

carries notice of convocation,

simultaneously in a press release and via the Tokyo Stocknotice of resolution andExchange’s “Timely Disclosure Network” (DTnet), and will post

materials of shareholders’

the Information on its website as soon as possible, following themeetings. An English version

official announcement. Even when it does not fall into the categoryof the notice of convocationof “material information,” the Company will voluntarily discloseof Annual General Meeting

information which may be of interest to stakeholders, in a fair,of Shareholders is also

accurate, and easy-to-understand manner, either on its website orprovided.

Annual shareholders’ meeting

HIGHLIGHT

Information Disclosure Methods

Relationship with Customers and Suppliers
Relationship with Shareholders and Investors

Information Disclosurein printed form, through various means of communication.
To ensure that foreign investors have fair and equal access toFinancial Results Briefing
Tokyo Electron conducts meetings to discuss its financial

simultaneously in Japanese

results with securities analysts and investors; these meetingsand English. However, due

are also open to members of the press. The Company

to the time required formakes audio recordings of its fiscal year-end and mid-termtranslation, there may befinancial results meetings, and posts these recordings on thecases where the posting ofCompany’s website. All of the documents distributed at its
quarterly financial results meetings are also posted on the

English information to thewebsite is delayed slightly.

TEL webpage for investor relations

MANAGEMENT REPORT

the information, the Company strives to disclose all information

website.

Publicized IR-related Materials

Since September 2003, Tokyo Electron

EHS REPORTTokyo Electron isa constituent of
the FTSE4Good Global
Index.
has been chosen for the FTSE4Good

Presentation materials used
at a results briefing

Materials prepared for anannual shareholders’ meeting

Global Index, which is a CSR index
provided by the FTSE Group. The FTSE
a joint venture between the Financial

Financial summaryTimes newspaper and the London Stock
Exchange.

SOCIAL REPORTGroup is a world leading index firm,

Fact bookFinancial report

Annual report27

Relationship with Employees
We are striving to create a workplace that enables all of our employees to reach their full potential
based on respect for their enthusiasm, autonomy, and willingness to take on challenges.

Approach to Human Resources

Developing Employee Support Systems

In pursuit of our vision of becoming an energetic, dynamic

The TEL Group is committed to developing a system forand creative company, the TEL Group respects the autonomy

helping employees to achieve work-life balance. These efforts

of its employees and their willingness to undertake challenges,

include enhancement of childcare leave1, childcare support

thereby helping them to realize their full potential.

working hours2, nursing leave (five days per year) andchildcare support leave (five days per year). In fiscal 2010, a

Our personnel system is designed to help each employee
achieve self-development and to contribute to the organization.

total of 82 employees took childcare leave.

Our evaluation system does not simply focus on results

We have instituted a “refreshment vacation” system,

but also emphasizes the process leading up to results, inwhich allows employees to take a two-week to one-monthparticular, the efforts made and the level of skills demonstrated

holiday when their term of service has reached 10, 15, 20, orby individual employees achieving certain results. The

25 years. We are also taking active steps to prevent on-the-purpose of this system is to fairly evaluate employees’ total

job mental health problems, which have increased recently

job performance based on the following three criteria: scopein Japan, by increasing our healthcare staff and providingof ability to be assessed for the process-focusing evaluation

education on mental health issues.

(competency); roles expected to play (mission); and results

Enjoying both work and child-raisingachieved according to the roles (performance). The assessedcompetency provides the skills and competencies possessedby an employee at the time of evaluation, and the assessment

Tokyo Electron has numerous schemes to support

is used to improve the skills and competencies required for

employees to continue to work after maternity/paternity

accomplishing a variety of tasks.

leave. During the several months it took my child tobecome accustomed to daycare, I worked shorter hours

Assisting Employees’ Career
Development

under one of the Company’s childcare support schemes

The TEL Group provides a variety of support to its employees

it became dark. In addition, my child often falls sick, andin response to their different career ambitions. Once a

the nursing leave helped me a lot on these occasions.

and was able to be at the daycare center for pick-up before

year, employees fill out a Self-Declaration Questionnaire toWith TEL’s extensive childcare support systems ascommunicate their preferences regarding job transfers orwell as a work environment supportive of working parents,

to share individual work-related problems. These employee

I can continue working withrequests are taken into consideration when transfer decisions

peace of mind and enthusiasm

are made. In addition, in order to provide employees withwhile raising my child. I really

opportunities to pursue their own career paths and add

appreciate the support offered bydynamism to the organization, an Open Job Posting System

the Company.

was introduced. In fiscal 2010, this system made 21 matches

Ayako Konishi

between eager and aspiring employees and recruiting

FPD DivisionTokyo Electron Limited

departments within the Group. In addition, 12 employees
in the general job category were successfully promoted to

1 Childcare leave: a system under which employees can take leave until theend of the April following the date on which their child turns 18 months old(or until their child reaches the age of three in some exceptional cases)

management positions, in line with their wishes, after they
were evaluated for those positions using an aptitude test.

2 Childcare support working hours: a system under which employees can
opt to work for shorter hours by one hour per day until the end of the
fiscal year in which their child completes elementary school (age 12)

Concept of the TEL Group’s Personnel System

Company

MissionIndicate company goals
and directions

Performance

Reward performance that helps
the Company reach its goals withcommensurate compensation

Mission:Competency:

The individual’s role

Competency to assess processes

Competency
Offer careers and opportunities to build skills
needed to meet the Company’s goals

Performance:

Results based on
employee’s role

Employees

28

TOKYO ELECTRON

Competency

Performance

Competency

Obtain expertise andoffer a professional attitude

Provide performance that helps
the Company reach its goals

Polish up professionalism
to obtain higher salaries

Environmental and Social Report 2010

Based on the belief that “employees are our valuableassets,” the TEL Group fosters a spirit of learning among its
employees, characterized by the following three principles
established for its human resource development.
(1) The workplace must support employee development.
(2) Self-motivation and a sense of responsibility are theinclude training in strategy formulation and organizational

basic requirements for employees to develop their

management, which are essential subjects for individual

talents and careers.

leader programs, and collective training sessions for all group(3) The Company must build a platform or framework

leaders of workplaces.

that provides employees with the opportunity andmotivation to learn.
The Group believes that education and training only
succeed when implemented continuously. In line withRelationship with Employees

TEL’s Basic Philosophy on Human
Resource Development

The leader programs are designed to provide practical,
interactive training—by encouraging participants to discuss awide range of workplace-related issues—in addition to giving

this belief, we are working to enhance our management

lectures and teaching theory.
This training also helps increase the team spirit of the Group,

organization and maintain our educational budget.

which is built by trainees from different locations in Japan.

The TEL Group established an internal educational institution,TEL UNIVERSITY, with the aim of providing employees with
opportunities for continued learning, thereby enhancing thecapabilities of both individual employees and the overall
organization. TEL UNIVERSITY is intended to provide
skills necessary for each to perform world-class work inaddition to building employees’ management capabilities andorganizational strength and developing future leaders.
TEL executives also attend TEL UNIVERSITY courses,
participating in lively discussions with employees. Successful
human resource development requires employees that are
enthusiastic about learning, as well as managers and a corporate
culture that support employee growth. Employees actively
learning at TEL UNIVERSITY and applying what they haveof both individual employees and the organization as a whole.
TEL UNIVERSITY will continue to contribute to the growth of the
TEL Group by developing competent professionals.

Nurturing Leaders
TEL UNIVERSITY has programs for nurturing future leadersand strengthening the abilities of leaders. These programs

unfortunately I could not make effective use of the knowledge I
obtained from those programs to help my work or workplace.
However, this is not the case with the management training
program I recently attended.
Previously, I had a negative image of “management,”
assuming it to be an impersonal, rigorously result-oriented kindof work. To my surprise, this training corrected my negative
view, making me realize that the essence of management is how
effectively you can encourage your subordinates to learn andgrow and how well you can create and manage a competentteam, although getting results is also important.
I started to try new approaches in my workplace using what
I learned from the training. I am pleased torealize that the training and my follow-up
practice has greatly helped enhance myinteraction with my subordinates anddevelop my ability and personality.

EHS REPORT

learned to their work and workplaces contributes to the growth

I have participated in a number of training programs, but

MANAGEMENT REPORT

employees with opportunities to obtain the knowledge andParticipating in management training

HIGHLIGHTTEL UNIVERSITY

Jun Ookura
SPE Elec. Engineering Dept.
Tokyo Electron Kyushu Limited

As part of activities to spread TEL values, the TEL Group provides an “invigoration fund”

SOCIAL REPORT

Initiatives to Invigorate the Corporate Groupof 10,000 yen per person to all employees in Japan, including contract employees. With
this fund, each department plans and carries out activities that allows participation of all
department members, aiming to invigorate the workplace. This program began in fiscal 2008
and is to be held for the fourth time in fiscal 2011. Each department prepares a proposal and reports details on the activity after it was held
via the corporate intranet. Almost all departments take part in this initiative and a diverse range of activities have taken place across thecountry, including pottery workshops, cook-out parties, fishing contests, and sports meets held jointly with a number of departments.

29

Corporate Social Responsibility (CSR)
The TEL Group seeks mutual development with local communities through various
communication activities that foster a relationship of trust.

Approach to Corporate Citizenship Activities
The TEL Group believes that one of its tasks is to contribute to the development of society, while always complying with social laws andnorms. Based on this belief, we engage in a variety of activities in Japan and overseas as a good corporate citizen.

Fundraising as Part of Philanthropic
Activities (Europe)
Tokyo Electron Europe Ltd. (TEE) ran a fund drive in acharity event to help Children in Need. TEE employees
dressed up in wigs and other costumes and raised
money by selling homemade cakes and getting people
to guess the number of sweets in a basket. Adding themoney obtained from collecting and recycling usedmobile phones, TEE donated a total of approximately 400
euros in fiscal 2010.

Activities with the Local Community(1) (the U.S.)
Tokyo Electron U.S. Holdings, Inc. (TEH) participates in
the Clean Sweep campaign organized annually by Keep
Austin Beautiful (KAB). Working in cooperation with otherneighborhood companies and the local community, TEH
has been supporting community
beautification and improvement
activities for more than 10 years.
TEH also holds a joint exhibitionof “green art” with Austin Green
Art (a local art group) in line with
the Earth Day movement, using
the space in the entrance hall of
the TEH head office.

Activities with the Local
Community (2) (Shanghai)
In September 2009 Tokyo Electron (Shanghai) Ltd.
(TES) participated in the Fun Run event held eachyear by the Zhangjiang Group. With major local
companies and government agencies also joining in,
the number of participants exceeded 1,000. All of themoney raised by this year’s Fun Run was donated tohelp disadvantaged children living in Shanghai andother regions.

30

TOKYO ELECTRON

Environmental and Social Report 2010

Tokyo Electron Kyushu Ltd. (TKL) undertook forestation activities in the Tokyo
Electron Forest, located in the Kawachi Dam area in Tosu City, Saga Prefecture, in
December 2009 and on Mt. Tawara in Aso, Kumamoto Prefecture, in March 2010.
In May 2010, new employees at Yamanashi Plant of Tokyo Electron AT Ltd.
weeded and cleared the area around Nirasaki Station and planted trees as part oftheir orientation training.
Forestation/tree planting activities are conducted by other group companies,
including TEH and TES, which actively encourage their employees to participate intree planting and fundraising activities.

Corporate Social Responsibility (CSR)

Forestation/Tree Planting Activities

HIGHLIGHT

Environmental Debriefing for the
Local Community (Tohoku, Japan)
environmental debriefing session for the local community. The
session was attended by a total of 31 participants comprisinglocal residents (representatives of neighborhood associations,etc.) as well as business and government representatives.
The event consisted of an explanation of the Company
profile and business, an inspection tour of plant facilities and

MANAGEMENT REPORTIn October 2009 Tokyo Electron Tohoku Ltd. held the second

manufacturing sites, including the liquid waste treatment
wing, and a concluding dialogue session, where the Company
received a host of helpful comments from the participants.
EHS REPORT

Educational Activities Conducted Jointlywith the Local Community (Miyagi, Japan)
In collaboration with The Kahoku Shimpo newspaper, Tohoku
University, and others, Tokyo Electron held a science event
The event featured shows and experiments on a variety ofscientific themes. For the science experiment classes, researchteams from Tohoku University and local NPOs organized science
experiments in purpose-built booths, which, combined with

SOCIAL REPORT

entitled “Talk about Fun Science!” at Tokyo Electron Hall Miyagi.

exhibitions by the TEL Group, consisted of a total of more than
15 science experiments presented at the event. Tokyo Electron
AT Ltd. presented four experiments on the phenomenon of
vacuum, which is an essential theme for our products. We
received favorable feedback from a lot of visitors. We willcontinue to hold this well-received event in coming years.

31Comments from a Third-Party Expert
I have read Tokyo Electron’s Environmental and Social Report 2010

offices by fiscal 2015 by 50 % per unit sales from the fiscal 2008

and received an explanation of the Company’s environmental and social

level. In addition, the Company has been working to reduce waste foractivities from staff at TEL’s Environment, Health & Safety Center. Here I

disposal, and its recycling rate for resources has been increasing for

express my view on this report as a third-party expert.

years. All TEL group plants and offices have achieved zero emissions.
This achievement can be attributed to the Group’s persistent

1. TEL’s Basic Philosophy and Environmental Initiatives

environmental efforts.

TEL’s basic philosophy includes “providing high-value products andservices (mainly semiconductor production equipment) around the

4. Relationship with Employees

world in order to realize healthy and enriched lives.” Accordingly,

In order to help people lead healthy and enriched lives, the Company

TEL is tirelessly promoting technological innovation and addressing

itself must be energetic and creative and have good employee

environmental issues. Today, as companies continue to grow,relations—by nurturing the enthusiasm and autonomy of individual

the impact their activities exert on society is growing larger andemployees, enhancing their skills and supporting career development.

their responsibility to society is becoming increasingly significant.

TEL endeavors to improve the workplace environment and develop

One major aspect of this corporate responsibility involves global

effective personnel systems. In particular, high regard should beenvironmental issues, which are being addressed by companies

given to its efforts to develop and enhance the professionalism of

in a host of ways depending on their business areas and activities.

its employees, including the managers, mainly through its internal

The main theme of TEL’s approach to environmental issues is the
reduction of greenhouse gasses (CO2), and its efforts in this area

educational institution, TEL UNIVERSITY.

are made in two stages: the production phase and use phase of

5. Future Issues

the product life cycle. A high evaluation should be given to its

TEL’s main business field—the supply of semiconductor production

proactive efforts to reduce environmental impact during the use

equipment—is not widely known to the general public. To

phase by improving productivity of and implementing a variety ofcompensate for this general unfamiliarity, efforts are needed toenvironmental measures for the semiconductor production equipment

provide more easy-to-understand descriptions of the Company, in

it has already delivered worldwide (approximately 50,000 units).

particular, its business activities, management policies, corporate
responsibility and details of the Group companies. In addition, while

2.	Environmental Initiatives for Product Use

TEL’s proactive efforts to address environmental issues should be

Out of the amount of CO2 emitted throughout the lifecycle of TEL’s

highly regarded, something still needs to be done with regard to

main products—semiconductor and FPD production equipment—,

explaining what we are doing in other aspects of social responsibility,

approximately 80% stems from the use of these products at its

including the roles of semiconductors in society and messages tocustomers’ sites. In response to this, TEL has set goals for theshareholders and investors.

Company’s commitment to reduce environmental impact, specificallyby reducing the amount of pure water required for and CO2 emissions
generated by the use of new equipment to be installed at customers’ sites* The Third-Party Comment above does notcontain opinions on the accuracy of theinformation included in this report.

in 2015 by 50% from the fiscal 2008 level. I hope that the Company’s

Yoshito Nakamura

efforts to achieve this goal will help encourage customers to make efforts

Professor, Faculty of Business Administration
Toyo University
Certified Public Accountant
Auditor of the Organization Supporting JOCV
Auditor of the Kawasaki City Council Social Welfare
Director of the Research Instituteof Accounting for the Construction
Industry

to reduce environmental impact and costs, thereby increasing theiroverall satisfaction. I advise that TEL should continue with these efforts.
3. Environmental Initiatives in Plants and Offices
TEL aims to reduce the amount of CO2 emissions from its plants andResponse to the Third-Party Comment
I am deeply grateful for Professor Nakamura’s comments regarding

we are involved. In this way, we will continue to make an effort underthe environmental and social activities of the TEL Group. The

our basic philosophy, which places emphasis on demonstrating

semiconductor, FPD, and PV cell production equipment industry,

consistent leadership as a world class company by creating hopewhich the TEL Group is part of, is capable of contributing

for the future and addressing environmental problems, and seek totremendously to environmental conservation and improvement, andbecome a company with high corporate value that is needed andwe believe that making continued efforts to provide excellent products

trusted by society.

and services is an effective way of fulfilling our social responsibility.
Following the advice given by Professor Nakamura, we will
work to provide explanations that allow all our stakeholders to easily
understand semiconductors and the other fields of business in which

32

TOKYO ELECTRON

Environmental and Social Report 2010

Satoshi Saito
Director
Environment, Health & Safety CenterTokyo Electron Limited

Tokyo Electron’s History

Founding Era

Era of Globalization

1963

Tokyo Electron Laboratories, Inc. (TEL) established and registeredwith a capital of five million yen.

1993

Tokyo Electron FE Korea Limited (currently Tokyo Electron Korea Ltd.)established.

1964

Starts importing and selling diffusion
furnaces manufactured by Thermco
Products Corp., taking its first step into
the semiconductor production equipment
import business.

1994

Tokyo Electron Europe Limited established.
Standards, Environment, & Safety Center (currently Environment,
Health & Safety Center) established.

1996

Tokyo Electron America, Inc.’s new
headquarters building and training
center completed.

1997

Tokyo Electron Tohoku Limited’s
Sagami Plant becomes the first
ISO14001-certified TEL Group
company (all plants are subsequently acquiring ISO14001
certification).

1999

Receives TSE’s Fourth Annual Award for Excellence in Disclosure.

2000

Semiconductor Equipment andMaterials International (SEMI), aninternational industry organization,
creates the SEMI Akira Inoue Award
for Outstanding Achievement in honorof the environmental activities in thesemiconductor industry of the late Tokyo
Electron Ltd. Chairman Akira Inoue.

1965

1967

Concludes an agency agreement with
Fairchild Semiconductor Corp. to sell
Fairchild’s IC testers in Japan.
Establishes Pan Electron Inc. to start selling Fairchild’s ICs.

Major Business Transformation

1968

TEL-Thermco Engineering Co., Ltd. (TEL-Thermco) established asa joint venture with Thermco Products Corp. and starts producing
diffusion furnaces in Japan.

1972

Tokyo Process Development Inc. established and starts import andsale of analysis equipment. TEL headquarters moved to the Meiho
Building in Shinjuku, Tokyo.

1975

Withdraws from production and export of consumer electronic
goods, such as car radios and calculators, which accounted for
60% of sales.

1976

TEL-Thermco develops the world’s
first high-pressure oxidation
system.

Manufacturing Functions Reinforced

1978

Tokyo Electron Laboratories, Inc. renamed Tokyo Electron Limited.

1980

Listed on the second section of the Tokyo Stock Exchange (TSE).

1981

TEL-GenRad Ltd. established and starts production of in-circuitboard testers in Japan.

1983

TEL-LAM Ltd., established as a joint venture with U.S.-based Lam
Research Corp., and starts production of etch systems in Japan.

1984

Listed on the first section of the Tokyo Stock Exchange.

1986

Central Research Laboratory
facilities in Yamanashi Prefecturecompleted.

In-house Production Expanded

Comments from a Third-Party Expert
Tokyo Electron’s History

Tokyo Electron continues to evolve, incorporating new technologies and concepts in responseto the changing times with a focus on the semiconductor production equipment field.

Starts Publication of the
TEL Group’s Environmental
Report.

2001

Establishes a new corporate message “PEOPLE. TECHNOLOGY.
COMMITMENT.”

Striving for New Growth

2003

Receives the Japanese Prime Minister’sAward for its industry-academiagovernment cooperative developmentof a large-diameter, high-density
plasma processing system.

2005

Receives TSE’s 10th Disclosure Award(for the second time after 1999).

2006

Establishes TEL Values.

1988

TEL-Thermco Engineering Co. Ltd. purchased from Thermco
Products Corp. and turned into
100%-owned subsidiary.

1989

Starts shipment of the CLEAN TRACK
MARK-V, coater/developers.

2007

Establishes TEL UNIVERSITY as an internal educational institution
to provide employee training and education.

1990

Makes a full-scale entry into the LCD
production equipment market.

2009Concludes an agency agreement with Oerlikon Solar Ltd. to sell PV
cell production equipment in the Asian and Oceanian regions.

33

Examples of entries received in the TEL Eco-Life Painting and Photo Contest

So Many Flowers!

Searching for Coolness

The Earth is Blue

Texas Snowman

Fish

Ugly Ducklings!

Listening to the Sound of Nature

Fresh Verdure

Sensing Nature’s Preciousness

Loch Eck

Train to the Future

Wasting Energy Kills LifeThe TEL Group held the TEL Eco-Life Painting and Photo Contest from
April to July 2010 as part of its activities to raise environmental awareness.
We received a host of entries from Japan and overseas.

Environment, Health & Safety Center
2-30-7 Sumiyoshi-cho, Fuchu City,
Tokyo 183-8705, Japan
Tel: +81-42-333-8050
Fax: +81-42-333-8477
http://www.tel.com
Published: October 2010

Use domestically produced materials
and reduce CO2 emissions.

™

The main body of this report (pages 3 to 32) was
printed on paper made from trees thinned fromforests as part of forest invigoration efforts.

A — (2) — 060002

This report was printed
using environmentallyfriendly soybean-based ink.

PR48-168