Human Resource

Approach to Human Resource Management

We believe that our corporate growth is enabled by people, and our employees both create and fulfill company values. Based on this approach, we practice motivation-oriented management. We align our human resources strategy with our management strategy, and since our founding, we have grown by responding quickly to changes in the business environment and contributing to the advancement of the semiconductor industry with original technologies. The driving force behind this growth is the motivation of each employee and their willingness to take on new challenges. We actively invest in our employees and implement a variety of measures while also providing many opportunities for employees to challenge themselves to achieve high-level goals by making the most of their individual potential. We have established a growth investment plan that includes spending 1.5 trillion yen or more on R&D investment and recruiting 10,000 employees globally, over five years from fiscal year 2025, and are moving forward with these initiatives.

These initiatives have led to continuous improvement of employee engagement scores and the maintenance of high retention rates. This has also helped us earn the trust of our customers by ensuring reliable technology.
Our global HR platform discloses information such as job duties and career opportunities to all employees. Through this, we are implementing autonomous career development and visualizing career paths.
In addition, to promote career development, we invest in talent development through TEL UNIVERSITY*. Furthermore, we differentiate employee evaluations based on Company performance as well as employee’s individual responsibilities and contributions to the Company. Through this, we achieve fair and competitive global level compensation while striving to attract and retain the best talent.

TEL UNIVERSITY:Refet to Developing Human Resources. An in-house company-wide education platform that support employees independently build their careers and realize their personal goals for their growth and development

Global Human Resources System

We operate across 102 sites in 18 countries and regions*. We believe it is important foremoloyees with different cultural backgrounds, experiences and attributes to share values and work together as one toward value creation.
In fiscal year 2018, we launched a new, common global HR system. It clarifies the roles and responsibilities for each employee, sets appropriate targets and challenging targets, provides absolute evaluation of degree of achievement, awards performance bonuses and provides further career opportunities. We aim to encourage greater engagement by evaluating the proactiveness of employees. We are also focusing on global human resources management to promote career advancement under a common platform without biases against any country or the Group companies affiliation. This allows us to respond to changes in business environments and allocate resources in an agile and optimal manner.

As of April 1, 2026

The Overview of Human Resources Management System

Key Features of the Human Resources System

• Common global rating system (GTC)/Evaluation system
• Evaluated on the two axes of targets and competencies
• Career paths for professional expertise, not limited to managerial roles
• Feedback by absolute performance evaluation and a point system that leads to employee development
• Setting Levels based on the responsibility of the job role

Job Grade System (GTC: Global TEL Career-Paths)

We operate a common global job-based grading system (GTC).
GTC is a system that places personnel in appropriate departments according to individual abilities, determines grade level and compensation according to job roles and scope of job responsibilities and clarifies the duties associated with each position. In addition, by operating a common system in Japan and overseas, we promote global career development in not only managers, but also experts, without restricting work location.

Global TEL Career-Paths

TEL Global Performance Management System

We operate TEL global performance management system, which is a global system that conducts evaluations based on the two axes of target and competencies evaluation.

For goal setting, we promote an environment that aligns organizational goals with individual goals. Employees set their goals with a clear understanding of the organization’s goals, and through discussions with their managers, individual goals are established semiannually based on each employee’s roles and responsibilities. This enables employees to strongly sense their contribution to the organization through achieving their goals.
Thereafter, progress toward achieving these goals, and the degree to which competencies are demonstrated through work against the competency definitions set for each level, are reviewed through regular one-on-one dialogues between an employee and a manager. In addition to managers’ evaluations, employees’ self-evaluations and multifaceted feedback from those involved in their work are also taken into account, ensuring fair evaluations based on absolute standards rather than relative comparisons.
Evaluation results are used in interviews between employees and managers where each individual’s strengths and areas for future growth are shared in addition to their achievement against their goals to encourage awareness that will lead to higher performance and employee growth.

EE: Exceeds Expectations

ME: Meets Expectations

PE: Partially Meets Expectations

NI: Needs Improvement

Compensation System

We not only comply with statutory minimum wages but also take living wage trends into account as we work to offer compensation that is competitive within our industry. We benchmark the compensation levels of competing companies and design our systems so that our compensation is on par with theirs. When business performance is strong, our levels are well above those of the benchmark companies.
We have introduced a job grading system called GTC as a globally unified human resources system. By applying the GTC-based human resources system rigorously, we evaluate each employee fairly on the basis of ability and results, and we have built a structure in which unreasonable pay gaps based on gender do not arise as a matter of principle. To gain a more accurate picture of the actual situation, we monitor the gap between male and female employees in salary payments, and in salary and bonus payments combined, once a year.

Employee Engagement

Improving employee engagement is essential to maximize corporate performance and achieve sustainable growth. Recognizing that employees both create and fulfill company values for us, we have been regularly conducting Group-wide engagement surveys since fiscal year 2016 to assess the current state of employee engagement and identify issues.
This survey measures employee engagement rather than employee satisfaction, and its main objectives are 1) to understand what motivates employees to enable them to maintain a high level of engagement, exercise their abilities to the fullest and continue growing with the company, and 2) to confirm and share employees' voices and opinions about the company and their workplace environments.
The survey includes 20 items identified as engagement factors, such as “teamwork,” “productive operational improvement,” “work-life balance,” “career opportunities,” and “compliance,” and relates to how everyday work is done as well as future growth. An engagement score is calculated based on the ratio of highly engaged employees.
Survey results are reported to management and shared among each division, and action plans for the whole company and divisions are deliberated and implemented. Through these initiatives, the score of the engagement survey conducted in fiscal year 2025 was 19 points higher than in fiscal year 2016. Each Group company has set the top 25% level for its own region and industry as a benchmark and is working on continuous improvement.
Based on the results of previous surveys, we are also focusing on initiatives to enhance career opportunities and talent acquisition and optimal deployment. In addition, to understand the status of implementation and improvement of measures between engagement surveys, we introduced
pulse surveys starting in fiscal year 2026. This enables us to visualize implementation status and strengthen support for organizations and departments requiring further improvement. We will recruit talent and expand the opportunities available to them, raise productivity by streamlining business processes, and strengthen collaboration between organizations, aiming for further growth.

Diversity, Equity and Inclusion (DE&I)

With the strong commitment of managements, we actively promote DE&I as one of management pillars that leads to the continuous generation of innovation and increased corporate value. Based on the idea that “ONE TEL and DIFFERENT TOGETHER with 3G (Global, Gender, and Generation),” we have taken on gender, nationality and generation as major themes. Each Group company is implementing various initiatives, such as setting the following goals.

The ratio of the number of employees at our Group companies in Japan to the number at our Group companies overseas

Targets do not apply to Tokyo Electron U.S. regions.

“Diversity, Equity and Inclusion Week (DE&I Week)”

In December 2025, we held our third DE&I Week across the Group. Under the theme “Positive changes through awareness and connections,” we extended the event from one week to two and held 40 events in total. These initiatives, which encouraged employees to see DE&I from a range of perspectives, also helped bring “ONE TEL, DIFFERENT TOGETHER™” to life.
This year's DE&I Week introduced new collaborative programs with local businesses and other companies. Participants responded very positively, noting that working with people outside the company brought in a wider range of perspectives and produced fresh insights not confined to our own corporate values.
As part of our community collaboration, we invited the art director of the Lumbini Art Museum in Hanamaki City, Iwate Prefecture, to give a talk, and we exhibited works by artists with disabilities. This gave employees a chance to look at things from different points of view and to gain new insights.
We also invited an outside expert to speak on the relationship between people and AI from a practical standpoint. The talk covered what innovation created by AI and humans together looks like, and how new forms of value creation emerge in the AI era when we accept imperfection and combine diverse areas of expertise. A panel discussion with our own engineers followed, providing valuable insights that participants can apply in their day-to-day work.　
Cafeterias at our offices in Japan served dishes from the countries where our overseas subsidiaries are located, giving employees a chance to experience other cultures.
To build on this and further raise each employee's interest in and understanding of DE&I, we will continue to actively adopt new initiatives and drive the Group as a whole to make “ONE TEL, DIFFERENT TOGETHER™” a reality.

Gold Rating in the Pride Index for the Second Consecutive Year

work with Pride: The work with Pride Association (wwP) helps businesses and other organizations promote and establish diversity management initiatives involving sexual minority groups, including the LGBTQ+ community. The wwP hosts an annual conference on LGBTQ+ issues and runs the Pride Index and Rainbow Certificate programs, which are primarily aimed at corporate and organizational managers responsible for human resources, human rights, and diversity-related concerns. https://workwithpride.jp/

Certified Group companies: Tokyo Electron Ltd., Tokyo Electron Technology Solutions Ltd., Tokyo Electron Kyushu Ltd., Tokyo Electron Miyagi Ltd., Tokyo Electron FE Ltd., and Tokyo Electron BP Ltd.

Major DE&I Activities

As a global, borderless company, we are implementing various initiatives as detailed below to leverage the strengths of our diverse human resources and create well-balanced systems and teams.

NPO J-Win: Japan Women’s Innovative Network was established in April 2007 as a corporate member-based organization with the aim of supporting the promotion and establishment of diversity management in companies.

Employees of a certain level or position based on the global human resources system

Example Initiative 1

UPWARDS: U.S.-Japan University Partnership for Workforce Advancement and Research & Development in Semiconductors. A future-oriented partnership between universities in Japan and the U.S. for workforce development and research and development in semiconductors.

Example Initiative 2

Workshop on Childcare Leave for Male Employees
Our Group holds workshops on childcare leave for male employees several times a year.
In addition to explanations about the system by the Human Resources Department, these workshops include sharing experiences by employees who actually took the leave, as well as Q&A sessions. The workshops draw a lot of interest every time, with many participants being not only employees considering taking childcare leave but also those who want to plan their life design for the future or learn how to support colleagues and subordinates raising children. Such initiatives foster a culture of mutual respect where employees understand the positions of others, and lead to higher rates of employees who take childcare leave.

Initiatives at Group companies in Japan

Disclosure of information about women in leadership roles

Group companies in Japan

Disclosure of the career-track recruits ratio of regular employees in accordance with the Labor Measures Comprehensive Promotion Act.

In the Tokyo Electron Group, all new graduate recruitment is done by headquarters. Career-track recruits are done by each of the Group companies

Diversity Activities

Employee Resource Group “DRIVE”

DRIVE is a working group made up of employees in a wide range of roles from sites across Japan, brought together by the vision “To aim to be a company where anyone can play an active role and generate high added value and profits.” By exchanging diverse opinions across sites, members work together to create a workplace where every employee's true value can shine. The logo was created around the idea behind the name: using Diversity and Difference as a force to bring about Revolution, Implementing that change, and making continued Effort to keep it Viable. The logo's many colors represent diversity and inclusion, and the italicized E symbolizes forward motion.
In fiscal year 2026, in addition to sharing information through regular meetings and online meetings, DRIVE held workshops, published internal interviews, and organized multinational and cross-departmental networking events, deepening mutual understanding and connections among employees. It will continue to expand opportunities for learning and dialogue as it takes its activities forward.

Active Involvement of Diverse Human Resources

We seek to be a corporation where a diverse range of employees can work to their full potential. By developing a workplace where anyone, irrespective of gender, nationality, age, background or ability, can work easily and feel motivated, we will promote creation of an environment where the diversity of talent leads to greater competitiveness.
Furthermore, we have established an inclusive working environment for people with disabilities, and we are promoting their employment. People with disabilities account for 2.32%* of employees at Tokyo Electron and 2.49%* of employees at our Group companies in Japan.

As of March 31, 2026

TEL Values

Systems and Initiatives for TEL Values

A total of 20,812* employees are working in our Group, which operates worldwide. We believe that each of them maintaining a high level of engagement and demonstrating their full potential will lead directly to our growth as a company.
By sharing with our employees the direction toward which management is aiming and providing platforms for direct dialogue through the employee meetings and discussions held at each site, we are striving to build mutual trust between the organization and individuals. Furthermore, to realize our Corporate Philosophy, we established TEL Values, which delineate our values, the mindset that each employee must possess and the codes of conduct to be passed on to the future. The TEL Values—pride, challenge, ownership, teamwork and awareness—are being put into practice by our employees all over the world.

As of April 1, 2026

Attitudes, codes of conduct, and values to be observed by each employee

Human Resource Development

Human Resources Development and Career

Our company is focusing on developing human resources that can play an active role on the global stage amid the rapidly changing business environment. To enable each employee to fully utilize their abilities, we increase company-wide innovative capabilities by establishing a systematic human resource development system and drawing out the potential abilities of our employees with diverse backgrounds. Furthermore, we are striving to maintain employee motivation by establishing systems that support employees’ self-directed career development and personal fulfillment, providing an environment where employees can proactively set their own goals and grow.

Developing Human Resources

Corporate Education System (TEL UNIVERSITY)

New Career Design

Some divisions and Group companies

Design your career

Employees set their career direction by referring to the career examples of various senior employees and colleagues in Seeker. They can identify the workplaces they should experience and the steps they should take to realize their future vision by referring to job information organized by group, and can further clarify what is needed to realize their career goals by asking career-related questions to generative AI and mentors.

Planning your skill path

Employees consult with supervisors and determine the skills they want to strengthen to “Visualize Your Ideal Future Self.” Based on employees’ wishes, supervisors assign work in line with management strategy. Optimal learning content and mentors are recommended based on the skills that employees determine. Putting the knowledge acquired into practice enables employees to efficiently obtain skills.

Support for Career Development

Development of the Next Generation of Executives

We are focusing on identifying the next generation of executives early on and providing systematic development to support sustained value creation over the medium- to long-term. Candidates are given learning opportunities, including external training and exchanges with other industries, to develop broader perspectives and build external networks. Through these initiatives, as a company that operates globally, we are developing human resources capable of adapting to diverse values and changes in the environment. Management also systematically considers and reviews assignments and provides experience suited to each individual’s motivation and stage of development, thereby establishing a system that supports their growth.

Development of Individual Contributors

We position highly specialized technologies and skills as an important source of corporate competitiveness and operate TCL (Technical Career Ladder) as a career development system centered on expertise. TCL is composed of chief engineers, technical experts and others, appropriately evaluates results achieved through specialist expertise, and enables employees to select careers in line with their motivation and strengths. Through the operation of TCL, we are establishing an environment where employees can continue to apply their specialist knowledge, while aiming to link specialized knowledge to business and organizational growth through programs such as technology exchange meetings and technical workshops.

Onboarding Reinforcement

We provide important knowledge and skills related to ethics and compliance, information security, environment, safety and quality, risk management, and sustainability at the time of joining the company. These programs are delivered in line with the laws and cultures of each country and region.
In addition, as generative AI and other digital technologies advance and reshape how work is done and how value is created, education that helps employees understand and use AI appropriately is becoming more important. Since fiscal year 2023, we have rolled out basic DX training to all employees so that they understand the importance of DX and can act on it. We also introduced AI literacy training into our new employee training from fiscal year 2027, building a company-wide foundation for understanding and using AI appropriately.

New Graduates and Junior Employee Programs

With an eye to large-scale recruitment, we offer development programs centered on TEL UNIVERSITY so that each new graduate and junior employee can play an active role early. The programs are conducted systematically from the first to third year after entering the company and provide basic knowledge and skills required as members of society, in addition to an understanding of our corporate principles and values.
Through these initiatives, we work to instill awareness of being a member of the Group and foster an attitude of continued learning and growth, thereby improving employee engagement.

Mid-Career Recruit Programs

“Welcome to TEL Meeting!,” held as part of the onboarding program for mid-career hires, gives participants the chance to learn about our history, corporate culture, and principles while deepening their understanding of our products and technologies. Group work and discussion help them build networks that cross departments and sites, giving them a foundation to apply their abilities with confidence in a new environment and contribute as full members of the team early on. In fiscal year 2026, 332 employees from every site in Japan took part in “Welcome to TEL Meeting!”

Specific initiatives

Major human resource development programs (Japan)

Within Goal-based Training, the Personalized Training program is also offered to temporary contract employees when there is a recognized operational need.

Trend of Education and Training Expenses (Global)

Education and training time per person: Total education and training time* ÷ Number of employees
Education and training expenses per person: Total education and training expenses ÷ Number of employees

Total training time: Number of participants for each training × Number of hours conducted

Breakdown of Education and Training Time (by Type)

As our workforce has grown with the expansion of our business, our training has centered on Basic Training. In fiscal year 2026, we also focused on education and development for leadership levels.

Breakdown of Education and Training Expenses (by Region)

Human Capital ROI

Human capital ROI: Consolidated net sales – (Total consolidated operating expenses - (Total expenses*)) ÷ Total expenses)

Total expenses = Wages in Japan + Welfare (Globally for education and training expenses)
The calculation method was revised in fiscal year 2026.

Work-life Balance

Work-life Balance Concept and Systems

We believe that harmony between work and life for each employee produces a synergistic growth effect both of employees and the company, and we are building structures for this. Our vision is to realize a truly global company that creates high added value and profit.
We recognize that in order to achieve this, it is necessary to reduce overtime through efficient work techniques and to have mechanisms in place to evaluate the outcomes. Based on this recognition, we are promoting the creation of a workplace where employees can work in a healthy and vibrant manner to achieve work-life balance.

Paid Leave Management

We believe that properly managing working hours and taking leave contribute to higher employee productivity, and we are working to eliminate long working hours, enhance our leave systems, and encourage employees to use them. For the annual paid leave utilization rate in Japan, we have set a medium-term target of 90% or more. We run awareness activities that encourage employees to take leave in a systematic manner, regularly monitor how much leave employees have taken, and promote management aimed at improving the utilization rate.

Management of Overtime Hours and Payment of Overtime Wages

We establish Group-wide guidelines on working hours every year. Working hours comply with the 36 Agreement*, excessive working hours standards, and the RBA Code of Conduct, and we ensure that working hours are managed appropriately through a time and attendance management system and that overtime is paid correctly.

The 36 Agreement refers to the Labor-Management Agreement relating to Overtime Work and Work on Days Off concluded under Article 36 of the Labor Standards Act.

Consultation with Employee Representatives on Working Conditions

We respect freedom of association and the right to collective bargaining as rights of our employees. Employee representatives are elected at each site, and alongside consultations on working conditions and on occupational safety and health, we hold regular exchanges of views on improvements to our systems and on the business environment. Through this continuous dialogue between labor and management, we work to build a good relationship.

Percentage of All Employees Covered by Collective Bargaining Agreements

Work Styles and Offices

We endorse work styles that contribute to a positive work-life balance, and are continually working to create environments that facilitate this. For example, we recommend that both mothers and fathers take advantage of our parental leave systems—one of several childcare leave systems we operate—and this has resulted in a high proportion of our employees returning to work after taking maternity/paternity leave and childcare leave. We also offer a range of work style programs, such as flextime system that allow employees to work flexible hours, and work from home system. We incorporate user feedback to improve our programs and promote efficient work styles that cater to diverse lifestyles and social situations.
We are engaged in building unprecedented new office environments that are work-friendly for all our employees and that support their endeavors.
To take one example, the Miyagi Technology Innovation Center we opened at Tokyo Electron Miyagi in fiscal year 2022 features an “Innovation Area,” which is a communal space for creating new technologies, and a “Creative Office,” which is centered on a bright and open communication space.
In Sapporo, Hokkaido, we have established the TEL Digital Design Square. Featuring focused workspaces, presentation areas, and casual meeting spaces that support diverse working styles, it serves as a hub for the developement of leading-edge software technologies. We are also working on creating office spaces at our other sites that encourage interactions between different departments and that provide support for new innovations.

Leave System

We also operate a unique “refreshment leave system” in different countries around the world, depending on the prevailing circumstances. This system aims to provide both mental and physical refreshment for employees, and so boost their motivation to work. In Japan, employees who have worked at the company for five years or more are granted special, supplementary paid leave of between one week and one month, which exceeds the range of statutory paid leave in Japan. In fiscal year 2026, 1,950 employees in Japan and 1,327 employees overseas took advantage of refreshment paid leave.
In addition, we own several company recreational facilities within Japan aimed at helping employees refresh themselves both mentally and physically.

Usage for employees in Japan

Refreshment leave system

Childcare and Nursing Systems/Employee Life Support

Childcare and Nursing Systems

We respect the various lifestyles of our employees and are investing effort into providing an environment where each employee can thrive. In addition, to the system made available by existing laws, we are independently building a substantial framework that allows employees to adopt a flexible approach to work that accords with diverse life events such as raising children or caring for family members.
With regard to the situation in Japan, we have acknowledged the maximum extension of the childcare leave period to the day a child reaches three years of age, as well as expanding our provision of a reduced working hours program for childcare to include employees rearing children as far as graduation from elementary school. We have also strengthened our support by establishing our own childcare support leave in addition to leave to care for a sick or injured child. The rate of male employees taking childcare leave has been rising, reaching 83.5% in fiscal year 2026. Through a comprehensive employee benefits service available to employees and their families alike, we provide support such as subsidies for renting childcare goods and for housekeeping services. We also hold interviews with employees before and after they return from childcare leave to support a smooth transition back to work.

We are advancing improvement of the system for balancing work and nursing care, for instance by providing nursing care leave on full pay for up to five days and by allowing nursing care leave to be taken up to three times per person requiring nursing care, for a total of one year.

Support for Employees During Childrearing

Employee Life Support

We are enacting a diverse range of support toward achieving a workplace environment where employees can work energetically while each making full use of their abilities. We present regular opportunities for employees aged 50 or over to attend seminars providing necessary information and review of financial planning, encouraging them to consider their way of working after retirement. Furthermore, we support employees’ everyday lives by offering assistance to all age groups on familiar topics such as nursing care for family members and inheritance.

Initiatives for Preventing Harassment

As stated in the Tokyo Electron Group Code of Ethics and the Tokyo Electron Group Human Rights Policy, we have zero tolerance for any form of harassment.
To promote and entrench understanding of preventing harassment, we provide web-based trainings for executives and all employees, while training is also provided specifically for managers. The key is to stop harassment before it happens. Training imparts the knowledge and information required to do this, with a focus on good communication in the workplace and prompt action when issues do occur. Personnel directly involved in fielding contact about harassment or related matters will participate in additional training to upgrade their own skills.
Each Group company has its own harassment consultation desk　to ensure that employees are not mistreated or otherwise disadvantaged for making contact, and consultation desk personnel will act in good faith, taking due care to keep matters private, including facts about the contact itself. If it is determined that a serious instance of harassment has occurred, the Disciplinary Committee will discuss what action to take against the harasser in accordance with the Rules of Employment. Appropriate corrective and preventive measures will be implemented.