Tokyo Electron

{{Short description|Japanese semiconductor equipment manufacturer}}

{{Infobox company

| name = Tokyo Electron Limited

| native_name = 東京エレクトロン株式会社

| native_name_lang = ja

| romanized_name = Tōkyō Erekutoron kabushiki gaisha

| former_name = Tokyo Electron Laboratories, Inc. (1963–1978)

| logo = Tokyo Electron logo.svg

| logo_upright = 0.8

| image = Akasaka-Biz-Tower-01.jpg

| image_upright = 0.9

| image_alt =

| image_caption = Akasaka Biz Tower

| type = Public

| traded_as = {{Unbulleted list |{{TYO|8035}} | Nikkei 225 component | TOPIX Core 30 component}}

| predecessor = Sakura Yoko KK founded on April 6, 1951

| foundation = {{start date and age|1963|11|11}} (as Tokyo Electron Laboratories, Inc.)

| founder = Tokuo Kub, Toshio Kodaka, Tokyo Broadcasting System, Inc.

| location_city = Akasaka Biz Tower, Minato-ku, Tokyo

| location_country = Japan

| area_served = Japan, Taiwan, North America, South Korea, Europe, Southeast Asia, China

| key_people = Yoshikazu Nunokawa (chairman), Toshiki Kawai (president & CEO){{Cite web |title=Leadership |url=https://www.tel.com/about/leader/ |access-date=2022-12-25 |publisher=Tokyo Electron |website=tel.com |language=en}}

| industry = Electronics
Semiconductors

| products = Networking devices, electronic components, production equipment for integrated circuits, flat panel displays and photovoltaic cells

| services =

| revenue = {{down}} ¥1.13 trillion (2020)

| operating_income = {{decrease}} ¥237.29 billion (2020)

| net_income = {{decrease}} ¥185.21 billion (2020)

| assets = {{increase}} ¥1.28 trillion (2020)

| equity = {{decrease}} ¥829.69 billion (2020)

| parent = TBS Holdings, Inc. (4.67%)

| num_employees = 12,742 (2020)

| divisions =

| subsid = 26 Group companies, including Tokyo Electron Device ({{TYO|2760}})

| homepage = {{url|https://www.tel.com/|tel.com}}

| footnotes = {{cite web | url=http://www.tel.com/eng/ir/ar2011/ar2011e.pdf | title=Annual Report 2011 | publisher=Tokyo Electron Limited | date=March 31, 2011 | access-date=February 23, 2012 | url-status=dead | archive-url=https://web.archive.org/web/20120104054428/http://www.tel.com/eng/ir/ar2011/ar2011e.pdf | archive-date=January 4, 2012 }}{{cite web | url=http://www.tel.com/eng/ir/fb/fb2011.pdf | title=Fact Book 2011 | publisher=Tokyo Electron Limited | date=March 31, 2011 | access-date=February 23, 2012 }}{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=no }}{{cite web | url=http://www.tel.com/about/summary/index.htm | title=Company Info | publisher=Tokyo Electron Limited | date=April 1, 2013 | access-date=March 11, 2014}}{{cite web|url=https://www.google.com/finance/quote/8035:TYO?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1276840800000&chddm=620811&chls=IntervalBasedLine&ntsp=0|title=Tokyo Electron Ltd: TYO:8035 quotes & news - Google Finance|website=www.google.com}}

}}

{{nihongo|Tokyo Electron Limited|東京エレクトロン株式会社|Tokyo Erekutoron Kabushiki-gaisha|lead=yes}}, or TEL, is a Japanese electronics and semiconductor company headquartered in Akasaka, Minato-ku, Tokyo, Japan. The company was founded as Tokyo Electron Laboratories, Inc. in 1963. TEL is best known as a supplier of equipment to fabricate integrated circuits (IC), flat panel displays (FPD), and photovoltaic cells (PV). {{nihongo|Tokyo Electron Device|東京エレクトロンデバイス株式会社|Tokyo Erekutoron Debaisu Kabushiki-gaisha|{{TYO|2760}}}}, or TED, is a subsidiary of TEL specializing in semiconductor devices, electronic components, and networking devices. As of 2011, TEL was the largest manufacturer of IC and FPD production equipment. Listed on the Nikkei 225, in 2024, Tokyo Electron had a market cap of US$114.6 billion, making it the third-most valuable company in Japan in terms of market cap, and the 12th ranked semiconductor-related company worldwide.

Company history

=1963-1979=

On 11 November 1963 Tokyo Electron Laboratories Incorporated was founded by Tokuo Kubo and Toshio Kodaka, largely funded by Tokyo Broadcasting System (TBS), with a capital of over five million yen. Later that year, their office opened in the TBS main building and began manufacturing thousands of quality-control and importing diffusion furnaces made by Thermco and selling Japanese-made car radios.{{cite web | url=http://www.tel.com/eng/milestones/index.htm | title=Explore Our History | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-url=https://web.archive.org/web/20120301015332/http://www.tel.com/eng/milestones/index.htm | archive-date=March 1, 2012 | url-status=dead | df=mdy-all }}

In 1965 the company approached a rapidly growing business in the market, Fairchild Semiconductor Corporation, and agreed to serve as a sales agency for them, increasing their capital to twenty million yen. Tokyo Electron began exporting IC testers, IC sockets, IC connectors, and other similar computer components.

The company opened an office in San Francisco, California and their new branch, Pan Electron, in 1968, establishing themselves as the only stocking distributor of imported electronic components in the region. One year later, they opened their Yokohama office and established Teltron, a major manufacturer and distributor of car stereos, expanding their headquarters to fill the entire TBS-2 building and raising their capital to 100 million yen.

=1980-1999=

The American electronics company Genrad Inc. and Tokyo Electron Ltd. in 1981 formed a joint venture manufacturing unit, Tel-Genrad Ltd., to make in-circuit board test systems in Japan.{{cite news |date=July 22, 1981 |title=Briefs |url=https://www.nytimes.com/1981/07/22/business/briefs-203430.html |work= The New York Times|access-date=March 15, 2024}} Tokyo Electron in 1986 was described by the New York Times as a maker of semiconductor manufacturing equipment.{{cite news |date=May 22, 1986 |title=Market Place; Japan Holdings Bolster Funds |url=https://www.nytimes.com/1986/05/22/business/market-place-japan-holdings-bolster-funds.html |work=The New York Times |access-date=March 15, 2024}}

In 1990, Tokyo Electron was competing with the Japanese company Dai Nippon Screen and the American company Silicon Valley Group as the largest producer of equipment to make semiconductors.{{cite news |date=February 13, 1990 |title=Low-Tech Company In High-Tech Gamble |url=https://www.nytimes.com/1990/02/13/business/low-tech-company-in-high-tech-gamble.html |work=The New York Times |access-date=March 15, 2024}} In 1991, Tokyo Electron was one of five Japanese companies criticized by the SEMATECH consortium for allegedly withholding new technology from the United States, specifically "precision heating equipment" made by Tokyo Electron Ltd. and Kokusai.{{cite news |date=May 7, 1991 |title=COMPANY NEWS; Japanese Criticized by Chip Makers |url=https://www.nytimes.com/1991/05/07/business/company-news-japanese-criticized-by-chip-makers.html |work=The New York Times |access-date=March 15, 2024}} By the early 1990s, Tokyo Electron's American rival Applied Materials was losing market share, and "sought U.S. government help in the form of an import quota" to the American market.{{cite news |date=February 19, 2001 |title=Morgan's Law |url=https://www.forbes.com/global/2001/0219/046.html?sh=11747b722484 |work=Forbes |access-date=March 15, 2024}} In May 1995, Tokyo Electron Ltd. was Japan's largest vendor of equipment to make semiconductors.{{cite news |date=May 3, 1995 |title=Market Place; For Japanese chip makers, a boom time mixed with caution. |url=https://www.nytimes.com/1995/05/03/business/market-place-for-japanese-chip-makers-a-boom-time-mixed-with-caution.html |work=The New York Times |access-date=March 15, 2024}}

=2000-2024 =

After import controls, Applied Materials by 2001 was double the size of Tokyo Electron, which was its next nearest competitor. In 2001, TEL acquired Timbre Technologies Inc. in Fremont, California, which developed measurement software technology.{{cite news |date=2001 |title=TEL to acquire Timbre Technologies |url=https://sst.semiconductor-digest.com/2001/02/tel-to-acquire-timbre-technologies/ |work=Semiconductor Digest |access-date=March 16, 2024}} In 2004, TEL announced improvements to its plasma etch chamber products.{{cite news |date=December 13, 2004 |title=TEL claims to have improved SCCM plasma etch process |url=https://www.eetimes.com/tel-claims-to-have-improved-sccm-plasma-etch-process/ |work=EE Times |access-date=March 16, 2024}} In 2005, Tokyo Electron was still the second-largest maker of chip manufacturing gear after Applied Materials, and above ASML.{{cite news |date=January 20, 2005 |title=Profit rises with sales at ASML |url=https://www.nytimes.com/2005/01/20/technology/profit-rises-with-sales-at-asml.html |work=The New York Times |access-date=March 15, 2024}} In 2006, Tokyo Electron had a research center at the Albany NanoTech complex, a nanotechnology center in New York.{{cite news |date=October 28, 2006 |title=New York Bets on High-Tech to Aid Upstate |url=https://www.nytimes.com/2006/10/28/technology/28chips.html |work=The New York Times |access-date=March 15, 2024}} The company started a venture capital unit in 2006, TEL Venture Capital, based in California.{{cite news |date=May 2, 2006 |title=Tokyo Electron Starts Venture Capital Unit|url=https://archive.nytimes.com/dealbook.nytimes.com/2006/05/02/sun-rises-on-tokyo-electrons-new-venture-capital-arm/ |work=The New York Times |access-date=March 15, 2024}}

As of 2011, TEL was the largest manufacturer of IC and FPD production equipment. On September 24, 2013, Tokyo Electron and Applied Materials announced a merger,{{cite web|url=https://dealbook.nytimes.com/2013/09/24/applied-materials-to-merge-with-tokyo-electron/|title=U.S. Manufacturer of Chip-Making Equipment Buys Japanese Rival|first=Michael J. de la Merced and Eric|last=Pfanner|date=24 September 2013 }} forming a new company to be called Eteris.{{cite news |url=https://online.wsj.com/articles/applied-materials-and-tokyo-electron-pick-eteris-for-post-merger-name-1404781083| title=WSJ| newspaper=Wall Street Journal| date=8 July 2014| last1=Clark| first1=Don}}{{cite web|url=https://www.reuters.com/finance/stocks/8035.T/key-developments/article/3025550|title= Key Developments| publisher=Reuters.com}} Eteris would have been the world's largest supplier of semiconductor processing equipment, with a total market value of approximately $29 billion. On 26 April 2015, the $10 billion merger was cancelled due to antitrust concerns in the United States.{{cite news| url=https://www.reuters.com/article/tokyo-electron-applied-material-cancella/update-1-applied-materials-tokyo-electron-give-up-merger-plan-due-to-regulatory-snag-idUSL4N0XO35620150427| title=UPDATE 3-Applied Materials scraps Tokyo Electron takeover on U.S. antitrust concerns| date=27 April 2015| newspaper=Reuters}}

In June 2023, Tokyo Electron was ranked among the Forbes Global 2000 list of the world's largest companies,{{cite news |date=June 8, 2023 |title=The Global 2000 |url=https://www.forbes.com/lists/global2000/?sh=8f571565ac04 |work=Forbes |access-date=March 9, 2024}} at which point it had around 12,742 employees.{{Cite web|url=https://www.forbes.com/companies/tokyo-electron/#620acb5238c9|title = Tokyo Electron| website=Forbes }} In late 2023, it was the largest semiconductor equipment maker in Asia. It was generating 43 percent of its revenue from China.{{cite news |date=December 15, 2023 |title=Tokyo Electron says China is snapping up its less advanced chip tools amid export controls |url=https://www.ft.com/content/186d3704-e54a-4e6a-9d0b-4fc0bf967d5f |work=The Financial Times |access-date=March 8, 2024}} In October 2023,{{cite news |date=October 15, 2023 |title=Tokyo Electron takes aim at NAND etching leader Lam Research |url=https://asia.nikkei.com/Business/Tech/Semiconductors/Tokyo-Electron-takes-aim-at-NAND-etching-leader-Lam-Research |work=Nikkei Asia |access-date=March 8, 2024}} the company announced it had developed new technology to improve advanced 3D NAND flash memory,{{cite news |date=February 23, 2024 |title=Tokyo Electron's market cap surpasses Sony on Nvidia boost |url=https://asia.nikkei.com/Business/Tech/Semiconductors/Tokyo-Electron-s-market-cap-surpasses-Sony-on-Nvidia-boost |work=Nikkei Asia |access-date=March 8, 2024}} making it the only competitor to Lam Research.

In early 2024 the company said it would raise its employees' starting salaries by 40% to secure talent and compete with the payrates of foreign companies.{{cite news |date=January 1, 2024 |title=Tokyo Electron raises starting pay 40% in race for chip talent |url=https://asia.nikkei.com/Business/Technology/Tokyo-Electron-raises-starting-pay-40-in-race-for-chip-talent |work=Nikkei Asia |access-date=March 8, 2024}} In February 2024, Tokyo Electron's market cap closed at US$114.6 billion, making it the third-most valuable company in Japan in terms of market cap, beating Sony Group. It also become the 12th ranked among semiconductor-related companies worldwide in terms of market cap. It continues to be listed on the Nikkei 225.{{cite news |date=March 4, 2024 |title=Japan's Socionext, Dicso to be added to Nikkei index |url=https://www.reuters.com/markets/asia/japans-socionext-dicso-be-added-nikkei-index-2024-03-04/ |work=Reuters |access-date=March 8, 2024}} In 2024, Toshiki Kawai was president and CEO, while Yoshikazu Nunokawa was chairman of the board.{{cite news |date=March 9, 2024 |title=Staff |url=https://www.tel.com/about/leader/index.html |work=TEL |access-date=March 9, 2024}}

== Products and services==

Supplying equipment to fabricate integrated circuits (IC), flat panel displays (FPD), and photovoltaic cells (PV), according to Barron's in 2024, Tokyo Electron Ltd. is engaged in the "development, manufacture, and sale of semiconductor production equipment and industrial electronics products for flat panel display manufacturing equipment." It has three segments: Semiconductor Production Equipment (SPE), Flat Panel Display (FPD) Production Equipment and Others. Others includes logistics, facilities management, and insurance.{{cite news |date=2024 |title=Tokyo Electron |url=https://www.barrons.com/market-data/stocks/8035/company-people?countrycode=jp |work=Barron's |access-date=March 9, 2024}} In 2023, it was reported that the company's FPD business had become "minor" in its earnings, while its SPE segment was steadily growing.{{cite news |date=August 11, 2023 |title=Strong demands from China partially offset Tokyo Electron's falling sales |url=https://www.digitimes.com/news/a20230811VL200/china-chips+components-east-asia-ic-manufacturing-japan-sales-tokyo-electron.html |work=DigiTimesAsia |access-date=March 9, 2024}} TEL's SPE segment develops and sells SPE such as coaters/developers, plasma etch systems, thermal processing systems, single wafer deposition systems, cleaning systems, and wafer probers. The FPD segment focuses on SPE for flat panel displays. In 2024, services listed by the company included field solutions, engineering services, repairs and spare parts, upgrades and modifications, and overhauling used products.{{cite news |date=2024 |title=Services |url=https://www.tel.com/product/service/index.html |work= |access-date=March 9, 2024}}

In 2012, TEL produced SPE for multiple purposes. Among those purposes was thermal processing, involving the deposition of thin layers of dielectric material between transistors onto the silicon wafer surface, using a heated low-pressure chemical vapor deposition (LPCVD) or oxidation process.{{cite web | url=http://www.tel.com/eng/product/tps/butps.htm | title=Thermal Processing | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=June 21, 2012 | archive-url=https://web.archive.org/web/20120621065230/http://www.tel.com/eng/product/tps/butps.htm | url-status=dead }} Also in 2012, products involved photoresist coating and developing to project a microscopic circuitry pattern on the wafer in photolithography.{{cite web | url=http://www.tel.com/eng/product/ct/buct.htm | title=Coater/Developers | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=April 15, 2012 | archive-url=https://web.archive.org/web/20120415202053/http://www.tel.com/eng/product/ct/buct.htm | url-status=dead }} There was also plasma etching,{{cite web | url=http://www.tel.com/eng/product/es/bues.htm | title=Etch Systems | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=January 6, 2012 | archive-url=https://web.archive.org/web/20120106230142/http://www.tel.com/eng/product/es/bues.htm | url-status=dead }} and products focused on wet surface preparation, using cleaning to remove contaminants such as dust.{{cite web | url=http://www.tel.com/eng/product/sps/busps.htm | title=Surface Preparation Systems | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=June 21, 2012 | archive-url=https://web.archive.org/web/20120621195652/http://www.tel.com/eng/product/sps/busps.htm | url-status=dead }} Other product areas in 2012 included single wafer chemical vapor deposition, involving the deposition of thin layers of various materials, such as tungsten, tungsten silicide, titanium, titanium nitride, and tantalum oxide.{{cite web | url=http://www.tel.com/eng/product/sd/busd.htm | title=Single Wafer Deposition | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=June 20, 2012 | archive-url=https://web.archive.org/web/20120620181750/http://www.tel.com/eng/product/sd/busd.htm | url-status=dead }} TEL's wafer probers tested the functionality and performance of each die on the wafer,{{cite web | url=http://www.tel.com/eng/product/wps/buwps.htm | title=Wafer Probe Systems | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=June 23, 2012 | archive-url=https://web.archive.org/web/20120623181552/http://www.tel.com/eng/product/wps/buwps.htm | url-status=dead }} while other products allowed corrective etching and trimming of thin films such as silicon, silicon nitride, silicon dioxide, aluminum nitride, and metals.{{cite web | url=http://www.tel.com/eng/product/ce/buce.htm | title=Corrective Etching/Trimming | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=April 30, 2012 | archive-url=https://web.archive.org/web/20120430082437/http://www.tel.com/eng/product/ce/buce.htm | url-status=dead }} It also sold integrated metrology (co-developed by TEL and KLA Tencor) in 2012,{{cite web | url=http://www.tel.com/eng/product/tti/butti.htm | title=Integrated Metrology Systems | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=April 30, 2012 | archive-url=https://web.archive.org/web/20120430082600/http://www.tel.com/eng/product/tti/butti.htm | url-status=dead }} and products for material and surface modification and doping using gas cluster ion beam (GCIB) technology.{{cite web | url=http://www.tel.com/eng/product/mm/bumm.htm | title=Material Modification/Doping | publisher=Tokyo Electron Limited | access-date=February 23, 2012 | archive-date=April 30, 2012 | archive-url=https://web.archive.org/web/20120430082443/http://www.tel.com/eng/product/mm/bumm.htm | url-status=dead }} In 2016, it was involved in selling Advanced Packaging.{{Cite web|url=http://www.tel.com/product/spe/nexx/index.htm|title=Advanced Packaging {{!}} Semiconductor Production Equipment {{!}} Tokyo Electron|website=www.tel.com|access-date=2016-03-16}}

Group companies

File:Akasaka Biz Tower.JPG, Tokyo]]

File:Tokyo Electron Europe HQ, Manor Royal, Crawley.JPG, England]]

The Tokyo Electron Group consists of TEL and the following subsidiaries:{{Cite web|url=http://www.tel.com/about/locations/index.htm|title=About TEL Tokyo Electron|publisher=www.tel.com|access-date=2016-03-16}}

TEL Epion Inc.
TEL FSI, Inc.
TEL Solar
TEL Technology Center, America, LLC
TEL Venture Capital, Inc.
Tokyo Electron Device Limited
Tokyo Electron Yamanashi Limited
Tokyo Electron Tohoku Limited
Tokyo Electron Kyushu Limited
Tokyo Electron Miyagi Limited
Tokyo Electron Technology Development Institute, Inc.
Tokyo Electron Software Technologies Limited
Tokyo Electron FE Limited
Tokyo Electron BP Limited
Tokyo Electron PV Limited
Tokyo Electron TS Limited
Tokyo Electron Agency Limited
Tokyo Electron U.S. Holdings, Inc.
Tokyo Electron America, Inc.
Tokyo Electron Europe Limited — Head Office (Crawley, England)
: German Branch
: Italian Branch
: Netherlands Branch
: Irish Branch
: French Branch
Tokyo Electron Israel Limited
Tokyo Electron Korea Limited
Tokyo Electron Korea Solution Limited
Tokyo Electron Taiwan Limited
Tokyo Electron (Shanghai) Limited
Tokyo Electron (Shanghai) Logistic Center Limited
Tokyo Electron (Kunshan) Limited
Tokyo Electron Malaysia Sdn. Bhd.
Tokyo Electron Singapore Pte. Ltd.
Timbre Technologies, Inc.

Research and development

TEL's Leading-edge Process Development Center is located in Nirasaki, Yamanashi. TEL also has the Kansai Technology Center in Amagasaki, Hyogo Prefecture and the Sendai Design and Development Center in Sendai, Miyagi Prefecture. TEL Technology Center, America, LLC in Albany, New York is the R&D center in the United States. TEL is one of the partners of IMEC, a microelectronics and nanoelectronics research center in Leuven, Belgium.

In July 2014 TEL announced the establishment of joint assembly lab with the Institute of Microelectronics in Singapore. The lab is focused on the research and development of Wafer Level Packaging and assembly, to address the need of Internet of Things with devices of high performance and low power consumption.{{cite web| title=Establishment of Joint Assembly Lab with Institute of Microelectronics in Singapore| url=http://www.tel.com/news/2014/0724_001.htm| publisher=Tokyo Electron Limited| access-date=29 July 2014}}

In 2023 it was selling its US headquarters in Southeast Austin, Texas, under CEO Toshiki Kawai.{{cite news |date=September 28, 2023 |title=Tokyo Electron selling 107-acre office campus in Southeast Austin |url=https://therealdeal.com/texas/austin/2023/09/28/tokyo-electron-selling-107-acre-campus-in-southeast-austin/ |work=The Real Deal |access-date=March 8, 2024}} In 2024, it leased a new American headquarters in Austin.{{cite news |date=February 2, 2024 |title=Tokyo Electron inks lease at RiverSouth |url=https://www.bizjournals.com/austin/news/2024/02/02/tokyo-electron-finds-new-north-american-hq.html |work=Austin Business Journal |access-date=March 8, 2024}} In 2025, Tokyo Electron Technology Solutions, the company's manufacturing subsidiary, is expected to build a $170 million chip equipment plant in Oshu, Japan.{{cite news |date=March 21, 2023 |title=Tokyo Electron to build $170m chip equipment plant in Japan |url=https://asia.nikkei.com/Business/Tech/Semiconductors/Tokyo-Electron-to-build-170m-chip-equipment-plant-in-Japan |work=Nikkei Asia |access-date=March 8, 2024}}

Sponsorships

File:Miyagi Prefectural Auditorium viewed from a greenway in Jozenji-dori avenue.JPG

TEL supports association football in Japan by sponsoring the J. League as a whole and the football club Ventforet Kofu based in Kofu and Nirasaki as well as the rest of Yamanashi Prefecture.

The company has acquired naming rights of two multipurpose halls:

{{nihongo|"Tokyo Electron Nirasaki Ars Hall"|:ja:韮崎市文化ホール}} owned by Nirasaki City
{{nihongo|"Tokyo Electron Hall Miyagi"|:ja:宮城県民会館}} owned by Miyagi Prefecture (currently closed due to the heavy earthquake damage)