Solutions that create value for customers

Responsivenessto customers

Building systems for creating value for customers
The semiconductor market has been expanding rapidly in recent years, driven by IoT, 5G, automotive automation, andother innovations. Tokyo Electron (TEL) is building an organization to realize more effective global operations, providing
the best technologies and services to meet customer needs as the market changes.
Since 2018, we have worked to strengthen our customer responsiveness through two divisions: our AccountSales Division, which leads to new technology development based on the needs of traditional customers of major
semiconductor manufacturers for next generation cutting-edge technology such as memory, logic, and foundry; and our
Global Sales Division appropriately addresses the needs of more than 100 new customers in Japan and overseas in suchfields as electrical appliances, automobiles, medical treatment, and healthcare. By building stronger, close collaborative
relationships with each business unit and moreover with each overseas subsidiary, our respective sales divisions provide
customers with swift, high-quality support and solutions.
We are working to build globally unified systems and structures in order to further enhance and stabilize the qualityof our service and support activities. The Global Service Committee, a regular gathering of the service leaders of eachdepartment and each overseas subsidiary, enhances information sharing and in-house coordination, including improving
the technical skills and interpersonal skills of our more than 4,000 field engineers worldwide, the localization of startups, and improving work efficiency using the work-time management system. Furthermore, through TELeMetricsTM 1,
a remote maintenance service offered through our Total Support Centers (TSCs2), we provide customers with highervalue-added services, by utilizing our wealth of knowledge and range of tools to enable us to propose customized
solutions services for the various challenges they face.

Medium-term goals

Become the best and sole strategic partnerTokyo Electron (TEL) helps customers manufacture cutting-edge devices by maintaining an accurate and timely grasp on
customer needs and providing innovative technologies for future generations. As a production equipment company with adiverse product range, we propose comprehensive solutions contributing to value creation for customers. Making full use ofstate-of-the-art AI technologies and knowledge management tools, we also provide high-value-added maintenance services
that support the stable operation of various generations of equipment. TEL strives to further enhance customer satisfaction,
which is a key management theme it has tackled since our founding, aiming to be the best and sole strategic partner forcustomers.

Main activities

SDGs initiatives

1
TELeMetricsTM: Referto p. 24.
2
Total Support Centers(TSCs): Refer to p. 24.

Proposing customer solutions leveraging a broad portfolio of products
Because semiconductors and FPDs are becoming increasingly sophisticated and diverse, in order to meet the needs ofproduction sites, such as improved yield and improved equipment efficiency per-unit area through enhanced productivity
and smaller footprints, TEL’s product development is initiated from the customer perspective.
Two of our divisions work closely together in turning these perspectives into products. Specifically, our AccountSales Division identifies customer demands for next-next generation technology and beyond, and based on these, ourCorporate Innovation Division reviews the requirements and converts them into actual, tangible products.
In proposing solutions to customers, we leverage a broad portfolio of equipment, including those used in the series ofkey patterning processes requiring advanced levels of technology, such as deposition, coating/development, etching, andcleaning. Through total solutions that incorporate systems and software in addition to production equipment, we seek tooptimize the production process. We strive to develop products that help strengthen our customers' competitiveness byachieving a balance between faster and better quality semiconductor production.

■ Contribute to customer innovation generation and value creation
through the proposal of comprehensive solutions

Solutions thatcreate value
for customers

Initiatives forfield solutions

Ensuring
Improvement ofsafety for customer satisfaction
customers■ Ensure a sustainable form of production and consumption
throughout product life cycles by responding to diversifying
needs, considering safety and the environment

Cleaning■Ensuring safety for customers
Improving in-house skills, Information provision, Global expansionof training for customers, Safe equipment design■Improvement of customer satisfaction
Customer satisfaction survey

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TOKYO ELECTRON SUSTAINABILITY REPORT 2020

TactrasTM VigusTM

EXPEDIUS TM-■Solutions that create value for customers
Building systems for creating value for customers, Proposing
customer solutions leveraging a broad portfolio of products■Initiatives for field solutions
Field solutions business, Development and production of
upgraded models, Work optimization, Knowledge management,
Total Support Center

Etching

Certas LEAGATM

CELLESTATM-

Industry,
innovation andinfrastructure

Responsible
consumption andproduction

Partnerships for thegoals
EXIMTM

CLEAN TRACK TM
LITHIUS ProTM

Coating/development

Trias +TM
TELINDY PLUS TM
NT333 TM

Deposition

TOKYO ELECTRON SUSTAINABILITY REPORT 202022

Responsiveness to customers
Initiatives for field solutions
Field solutions businessKnowledge management

As progressive improvements are made in the performance of CPUs1 and semiconductor memory, as advances are madein miniaturization for mass production, and as transistors used in autonomous driving systems and VR/AR2 become
increasingly integrated, there is a need for semiconductors across a wide range of fields, such as medical treatment,
finance, transportation, and manufacturing. Extending the life cycle of products is another challenge, evidenced by thegrowing demand for the long-term stable operation of semiconductors for automobiles and industry.
Tokyo Electron (TEL) is working to further strengthen its field solutions business to ensure that shipped equipment canoperate stably in the market over a long period. We are engaged in various initiatives to help maximize our customers’
business operations, including promoting knowledge management in field service, continuously improving our fieldengineers' skills, strengthening our global support system through Total Support Centers (TSCs), and expanding upgraded
models.

1
Central Processing
Unit (CPU): A typicalcomponent of acomputer, alongsidememory and hard disks
2
Virtual Reality (VR):Technology thatcreates a virtual world
resembling reality in acomputerAugmented Reality(AR): Technology thatuses computer graphics(CG) and so on to reflect(augment) virtual reality
in the real world

TEL promotes group-wide knowledge management1 so that it can deliver high-quality service swiftly to its customers.
In the area of field service, we have been working on globally implementing Service CRM2 so that we can create a
database and centrally manage customers’ equipment records (support and incident history). Having started in Japan
in fiscal year 2020, Service CRM is being progressively expanded in Singapore and Europe in fiscal year 2021. Accessible
to field engineers around the world, it allows us to increase the volume of operational knowledge data. It enables us torespond to calls from customers faster and more accurately efficiently. In addition, regarding our system that allows
engineers to perform natural language searches (Japanese, English, and Chinese) for information they require from thevast amount of accumulated technical documentation, efforts have been made to improve the accuracy of searches
by utilizing AI in image recognition and natural language processing. As a result, knowledge relating to incidents can bereadily searched, and predictions concerning the cause of events can be made with greater accuracy.
Going forward, as we promote efforts to manage the various systems throughout the TEL group using One Platform3,
we remain committed to further improving the efficiency of our customer responsiveness.

Development and production of upgraded models
In order to meet the needs of customers producing IoT-related products, TEL has established a system for developing
and producing new upgraded models based on previous-generation equipment supporting 200 mm wafers. Upgraded
models help customers to improve productivity and reduce environmental impact by replacing old units and parts withnew ones while maintaining compatibility with existing processes and offering performance in terms of transfer speed
and so on at the same level as the latest equipment. In fiscal year 2021, we began selling upgraded models of ALPHA8SE™ 3 and UNITY™ Me4, systems for peripheral devices that we had previously sold as new equipment. We also began
developing upgraded models of coating/developing equipment and cleaning equipment for 200 mm wafers.
TEL’s lineup of small-diameter equipment

ALPHA-8SE TM i

Upgraded model complete

NS300+ 200 mm
Conversion

CLEAN TRACKTM ACTTM 8

Cleaning System

Coater/Developer

ThermalProcessing System• 150/200 mm• Diffusion• LP-CVD• ALD

Upgraded model under review* All models CUE5 compatible

UNITYTM Me+

3
ALPHA-8SE™: A batch
thermal processing
system that canaccommodate lowtemperature to hightemperature processes
4
UNITY™ Me: A dry etchplatform developed by
TEL for wafers up to
200 mm5
CUE: Certified Used
Equipment

2Service CRM: Service
Customer RelationshipManagement
3
Efforts to manage
systems using One
Platform: Refer to p. 28“Continuous
improvement ofbusiness operations.”

Knowledge management tools
4
BI: Business Intelligence

Multi Database
Trouble Information

Equipment Records(Power BI4)

WisdomKnowledge SearchComprehensive search ofequipment history

Service CRM

Comprehensive search ofequipment history“Serial Number” axis

“Trouble” axis

Parts Order History
Plasma Etch System

Oversea Report• 200 mm
• 150 mm (2021–)• Front/Back scrubber

1
Knowledge
management:
Management approachto promote internal
company sharing of
tacit knowledge held byindividuals, in order toencourage innovationand to improve overall
productivity• 75/100/150/200 mm• l-line, Krf, ArF• SOG/SOD, PI• 100/150/200 mm• Oxide, Nitride, Si, SiC

Serial Number
SearchSymptom
SearchBKMBest Known Method
Trouble shooting manual

Total Support Center
TEL has built a global support system, establishing Total Support Centers (TSCs) in Japan, the United States, and China.
At each TSC, dedicated representatives maintain and utilize a database of information about customers’ equipment
and examples of similar incidents. The TSCs also employ TELeMetricsTM to perform remote maintenance. These systems
facilitate collaboration between the TSCs, field engineers, and plants, helping us to respond promptly and appropriately tocustomer inquiries and any problems that arise.

Work optimization
To improve the work efficiency of field engineers worldwide, and to enhance service quality and streamlining personnel,
TEL uses globally common timesheets to conduct detailed work-time management and analysis for each location andproduct. In addition, intent on further improving work efficiency, we have been particularly focused on reviewing workwhere considerable improvement is likely based on the types of tasks undertaken by engineers and the time taken, suchas work involved in starting up equipment and repair work.

CustomerTSC
TEL eMetricsTM

BKM

Knowledge Search

23

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

TOKYO ELECTRON SUSTAINABILITY REPORT 202024

Responsiveness to customers
Ensuring safety for customers

Improvement of customer satisfaction

Improving in-house skills

Customer satisfaction survey

In October 2019, we established a training operations center to enhance the skills management, training structure, andglobalization of field engineers. Having built a group-wide skills management system in accordance with SEMATECH (aU.S. consortium for the joint development of semiconductors), we deploy the most suitable human resources to provide
customers with service, based on an objective understanding of the skills of our engineers. We are also committed tocontinuously reviewing and improving our training curricula and content from a global perspective, including establishinga system whereby field engineers can choose the training programs they need to attend in order to improve their skills.

Tokyo Electron (TEL) conducts a customer satisfaction survey (TEL CS Survey) every year with the goal of making
continual improvements based on customer feedback. The survey started in fiscal year 2004, aimed at just a limited
number of divisions. It was expanded to include all semiconductor production equipment divisions in fiscal year 2014, andlater the flat panel display production equipment division and overseas subsidiaries in fiscal year 2016, and currently, it is
implemented company-wide as the Customer Satisfaction Survey Program (CSSP).
Under the CSSP, we survey customers once a year, at the same time each year, and ask specific questions that will leadto improvements on a practical level. Results from the survey are analyzed by product, account (customer), and function(software, development, etc.), and given as feedback to customers. We also share the results with relevant divisions, suchas sales, production, and support, and implement initiatives for improvement. Improvements are also made continuously
to all aspects of the survey method, including the questions asked, the analytical methods used, and the overall operationof the survey activities.
In the customer satisfaction survey for fiscal year 2020, responses were received from approximately 1,400 individual
customers, which is 69.5% of all customers. We received evaluations of three points or higher* on 93.3% of all questions asked.
When we receive an evaluation of one point (Very Dissatisfied), we respond to the customer as quickly as possible aspart of a Shift Left approach to implementing early-stage improvements throughout the survey process. Going forward,
we will continue to aim for three points or higher for 100% of the questions asked, and the entire company will work as
one to implement customer-driven improvements.

Information provisionTokyo Electron (TEL) is committed to providing sufficient information on its products toensure that customers can safely use the products. All products purchased by customers
come with a TEL Safety and Environmental Guidelines manual. The manual describes
potential risks associated with using our products together with the methods for averting
those risks, as well as safety measures applied to products and recommended methods for
product disposal. It is divided into such categories as chemical, electrical, mechanical, andergonomic. The manual is available in 12 languages1 to ensure that customers around theworld can understand the content accurately and safely use the products. Customers are also
provided product-specific manuals tailored to the relevant product specifications.
If new safety warnings become apparent after a product ships, we contact affected
TEL Safety and Environmental
Guidelines
customers individually and share that information with them.
We also pay close attention to safety when delivering products that involve the use of hazardous chemicals or highvoltage electricity. Furthermore, when delivering products to a customer’s new production line, in accordance with TEL
regulations, we thoroughly consider all safety aspects beforehand by checking the customer’s facilities, equipment, safe
work standards, and so on.

Global expansion of training for customers
TEL has established training centers all over the world, mainly at its development and production sites, and is providing
customers with training on equipment operation and maintenance to ensure they are able to use the products safely. In
July 2019, we opened a new training center at Tokyo Electron Korea. Using actual equipment, practical training is beingrolled out at training centers globally, delivered by about 50 dedicated instructors whose skills have been recognizedby our own internal certification system. In addition, we also implement online education as well as on-site training at
customer’s plants.
By conducting online surveys in order to respond more quickly to our customers’ needs, and by collecting and analyzing
customer feedback, we are working to improve the content of our training programs and the equipment used. Goingforward, we will continue to give priority to customer safety as we put effort into further developing our training
environment.

Safe equipment design
Taking the entire product life cycle into consideration, TEL carries out product risk assessments as early as possible in thedevelopment phase. Based on the assessment results, we implement safe equipment design2 to reduce the risks posed tohumans. We also examine and ensure compliance with increasingly strict laws and regulations around the globe, and havea system in place for all safety regulations of the regions where our equipment is delivered.
Equipment shipped from TEL is checked by a third-party inspection organization to ensure that it complies withinternational safety standards such as SEMI S23 and CE marking4. We also obtain Certificates of Conformity (CoC) from
Notified Bodies in Europe in line with the Machinery Directive and EMC Directive5. In addition, we are actively working tocomply with KC Mark, KCs Mark, and other certifications as Korea, China, and elsewhere in the Asian region strengthen
their safety laws and regulations.

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TOKYO ELECTRON SUSTAINABILITY REPORT 20201
12 languages: Japanese,
English, German, French,
Italian, Dutch, Russian,Portuguese, Korean,
Traditional Chinese,
Simplified Chinese, andFinnish2
Safe equipment design:
A design concept thateliminates the cause of
the machine's harm tohumans through thesafety design of themachine.
3
SEMI S2: This is a set ofenvironmental, health,and safety guidelines
for semiconductor
production equipment.
It is used mainly by theleading manufacturersof semiconductor
equipment in the UnitedStates and Europe, notonly for ICs but also
as safe procurement
guidelines for electricand electronic device
manufacturing
equipment around theworld.
4
CE marking: When
exporting into theEuropean Union,
CE marking defines
rules for displaying
a CE mark as proof
that the equipment
is safe and complies
with EU-defined rules(Directives).
5
EMC Directive: Thisis one of the New
Approach Directives
that apply to the 27 EU
member states. This
directive applies to allelectric and electronic
devices that are at
risk of being disturbed
by electromagnetic
interference or that may
interfere with otherequipment. The current
directive is 2014/30/EU.

*
On a four-point scale,three points or higher
represents “VerySatisfied” or “Satisfied”■Improvement example
As a result of the customer satisfaction survey, issues that would not normally be identified were brought to light,
and persons-in-charge and managers at TEL, who are in direct contact with customers, made improvements with thecooperation of the relevant divisions. This led to improved evaluations of three points or higher for the question relating
to software support for problem-solving, which was one of three questions we focused on during fiscal year 2020.
We believe these improved evaluation scores from customers result from our efforts to enhance support for software
operating across multiple pieces of equipment, which we have been working on for some time.

Percentage of responses
that indicated customer
satisfaction

CS Survey activity
preparation

Feedback to customers
Implement improvement activities
in each division
Conﬁrm progress of improvement
activities

Plan

Do

Act

Check

Conduct survey ofcustomers

93.3%

Analyze and reportsurvey results
Investigate
improvement
plan

TOKYO ELECTRON SUSTAINABILITY REPORT 202026