Digital Transformation (DX)
Approach to Digital Transformation (DX)
Semiconductors are essential to economic activity and society, and the market in which we operate is expected to continue expanding. We have enhanced corporate value by providing Best Products with innovative technology and Best Technical Service with high added value. To achieve further growth through sustainable value creation, we have positioned two initiatives as key pillars of DX-driven transformation and are executing these initiatives: the creation of high added value centered on development and manufacturing* and the enhancement of strategic execution capabilities through the advancement of our management and operational model.
As core capabilities, we are advancing the development of EpsiraTM, a DX solution that provides an end-to-end framework from equipment development through to services. At the same time, we have integrated corporate planning, business process re-engineering, and digital/IT functions, establishing a structure that enables seamless execution from strategy formulation to business transformation in close collaboration with business divisions across the Company.
Installation and Maintenance Services
Operating Model Enabling a Continuous Strategy-execution Cycle
The operating model we aim to establish is characterized by a cyclical mechanism in which strategies are consistently executed at the operational level, and insights generated from business activities are reflected in management decisions in a timely manner. Based on an ideal operational state, we design and operate business processes, data, IT, and organizational roles in an integrated manner, enabling agile decision-making and execution in response to changing conditions.
Through these efforts, we are strengthening the foundation that supports business growth by improving productivity and organizational efficiency, without relying on increases in headcount to absorb higher workloads associated with business expansion. At the same time, we are implementing a new way of working (New Work Style) in which employees can focus on high-value-added activities, and fully leverage their capabilities. By creating an environment where individual motivation and strengths translate into proactive action and results, we are advancing our “Motivation-oriented Management.” We monitor and manage the impact of these initiatives using indicators such as productivity, process lead times, and man-hours. Progress and outcomes are regularly reviewed at the Top Management Conference and Division Officers Meeting. These insights are also utilized in deliberations by the Board of Directors.
Data-driven Management and Business Process Re-engineering
To embed this operating model into our management and operations, we have established two strategic focus areas: data-driven management and business process re-engineering.
In data-driven management, we strengthen the Group-wide data platform and improve the quality and speed of decision-making through role-based KPI design. In business process re-engineering, we redesign operations from an end-to-end optimization perspective using digital technologies. Standardized and optimized processes enhance data quality and visibility, supporting data-driven management.
By linking these initiatives, we embed the strategy-execution cycle into daily operations and achieve advanced data utilization and operational optimization across all business activities, including development and manufacturing. We formulate roadmaps aligned with management objectives and establish an environment that enables the effective use of digital technologies, including AI and citizen development. Through on-the-ground execution, we drive transformation and enhance management and operational frameworks, thereby supporting the continuous creation of high value-added and sustainable company-wide value.
Continuous Improvement of Business Operations
We are implementing a new enterprise system (ERP*) to further improve productivity and quality. The purpose of the system is to significantly improve operational efficiency, make management decisions that respond quickly to changes and create new value by utilizing globally integrated information with an eye toward overall digital transformation.
In addition to the headquarters, where the system has already been implemented, we first completed the implementation of this system at overseas subsidiaries and manufacturing sites in Japan in fiscal year 2024. Going forward, we will make maximum use of the knowledge we have gained through the process so far, and will proceed with the implementation of the system to subsequent sites. In addition, we will work with our partner companies to realize a globally integrated system by developing functions and others to improve operational efficiency and further enhance system performance.
Overview of the New Enterprise System
ERP: Enterprise Resource Planning. A system that integrates the core business operations of an enterprise, such as accounting, personnel, production, logistics and sales, for better efficiency and centralized information.
World-class manufacturing operations through the realization of Smart Production concepts
World-class Manufacturing Operations
In order to respond flexibly to changes in internal and external environments and to meet customer expectations, Tokyo Electron is advancing initiatives under the following themes with the objective of achieving world-class manufacturing operations, primarily through the Corporate Production Division.
By promoting Shift Left (front-loading), Tokyo Electron is working to prevent risk identification gaps by transitioning from a project-specific risk identification to a companywide design process that centralizes and shares information on risks throughout the organization. We also established new KPIs relating to equipment defects and field defects and are rolling these out horizontally at sites while performing KPI trend analysis throughout the Group to achieve improvements and enhance quality even more.
Supply chain management is becoming even more important in the semiconductor production equipment industry. We are working to visualize our supply chain so that we can achieve stable procurement, comply with laws and regulations, and identify risk components, as well as optimize procurement processes,
parts costs, and parts inventories through coordination among manufacturing companies. In addition, we are implementing sustainable procurement activities throughout the supply chain while fulfilling our social responsibility and giving due consideration to the environment.
To achieve One-touch Start-up, we are simplifying installation and connection work, and developing measurement and control technologies to shorten
startup times, enhance work quality, and reduce the risks of human error and operational mistakes. By automating and autonomously controlling process
tuning after equipment startup, we deliver high-quality equipment with shorter lead times and contribute to even higher productivity on the part of customers by increasing equipment utilization rates through reduced maintenance time.
To achieve the Smart Production concept, we are implementing production innovation that covers the entire value chain from order receipt and manufacturing
to equipment installation and maintenance at customers' sites. Through the linking and utilization of production data and the visualization of information, we are improving product and operational quality while pursuing substantial increases in productivity by promoting automation and standardization.
Smart Production Vision
