Material issues

By practicing our Corporate Philosophy through the realization of our Vision, we aim to expand medium- to long-term profit and to continuously enhance our corporate value; to that end, we have identified key items that should be worked on with priority as our material issues, and these are reviewed each year.
Additionally, we are working continuously to create new value through the value chain of our business activities anchored around material issues.

Material Issues Identification Process

Identified Material Issues

Material Issues Identification Process

Analyze environment and determine issues	We analyze the status of social issues and the SDGs, business environments, engagement with stakeholders¹, results and key risks in our business activities² to determine issues that could become our material issues. Social Issues Climate change, human rights issues, poverty, educational inequality, interstate conflicts and geopolitical confrontations, migrant and refugee issues, supply chain management, technology and ethics, cybersecurity, inflation, etc. Business Environment Further expansion of semiconductors and semiconductor production equipment markets due to the rapid transition to a data-driven society centered on AI development, initiatives for the preservation of the global environment, human rights initiatives, further strengthening of corporate governance, etc.
Prioritizing / Mapping	Determined issues are prioritized, then evaluated and mapped on two axes (double materiality): “Impact of the company on society and the environment,” taking into account stakeholder influence and interest, and “Impact on our performance and corporate value,” focusing on continuously enhancing corporate value.
Identifying Material Issues	We identified key items as material issues following discussions and decisions by the Corporate Officers Meeting, participated in by the CEO, and a report to and approval of the Board of Directors. In addition, we confirmed the material issues’ relation to key indicators for continuous corporate value enhancement*³ and the major 16 risk items, as well as the SDGs to be addressed. Furthermore, we organized the relation between the value chain and material issues.

We obtain the advice of a third party specialist regarding consideration of the process by which we identify material issues.

Refer to Stakeholder Engagement

Refer to Risk Management

Refer to Integrated Report 2025 “Key Indicators for Continuous Corporate Value Enhancement”

Identified Material Issues

Material Issues	Our Impact	Impact on Society	Main Initiatives
Climate Change and Net Zero	Reduce the environmental impact of our business activities, products, and services, to achieve net zero emissions	Reduce climate change risks and create new opportunities in technology, human resources, industry, and other areas	Medium- and Long-term Environmental Goals and State of Progress
Product Energy Efficiency	Enhance product competitiveness by achieving both the environmental performance and process performance of products	Preserve the global environment by providing environmentally friendly products	Product Initiatives
Best Products with Innovative Technology	Establish competitive advantages by creating high-value-added products with innovative technology	Promote technological innovation and societal development through the evolution of semiconductors	Research and Development
Best Technical Service with High Value Added	Expand business opportunities by providing advanced field solutions that solve customer issues	Improve the yield and productivity of semiconductor manufacturing, and maximize equipment utilization rates	Field Solutions
Customer Satisfaction and Trust	Expand mutual benefits as a sole strategic partner for customers	Promote value creation and continuous growth for customers, and further revitalize the industry	Customer Satisfaction Solutions that Create Value for Customers
Supplier Relationship	Create added value and stabilize the supply chain through collaboration with suppliers	Maintain soundness and strengthen competitiveness throughout the supply chain	Supply Chain Management
Respect for Human Rights	Reduce and eliminate human rights risks in business activities and foster a corporate culture in which employees can work energetically	Address human rights related social issues such as discrimination, inequality, and those related to labor and safety	Human Rights
Employee Engagement	Maximize the performance of employees, who both create and fulfill company values	Promote economic growth by reducing risks, creating innovation, and other measures stakeholders	Employee Engagement
Safety First Operation	Achieve sustainable operations by putting safety first	Establish safety as a social foundation	Safety
Quality Management	Improve management efficiency through advanced quality management	Build a sustainable society by improving productivity and reducing environmental impact	Quality
Compliance	Ensure stable business operations and enhance corporate trust by complying with laws and regulations	Improve soundness of society by realizing social responsibility	Compliance
Ethical Behavior	Develop into a company that is highly regarded by society and where our employees can take pride in their work	Form a fair and orderly society	Compliance/Code of Ethics
Information Security	Create an environment in which data can be used safely and securely to conduct business continuously and reliably	Stabilize social infrastructure by ensuring the convenience and security of information	Information Security
Enterprise Risk Management	Strengthen resilience by appropriately managing and responding to business risks	Sustainably develop the economy and society by eliminating and reducing risks	Risk Management