[Company analysis] Tokyo Electron Ltd. (東京エレクトロン)

「Tokyo Electron Ltd. (東京エレクトロン)」is a semiconductor manufacturing equipment manufacturer located in Yamanashi Prefecture. They mainly handle coater, developer and etching system for semiconductor manufacturing use. In the front-end process of semiconductor manufacturing field, they have the top market share in Japan and 4th highest share in the world. Together with「Advantest Corporation(アドバンテスト)」, it is a company that represents the semiconductor manufacturing equipment industry in Japan. The number of consolidated employees is approximately 13,021. 

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Tokyo Electron Ltd.
Company name (Japanese)	東京エレクトロン
Date of establishment	Monday, November 11, 1963
Headquarters location	〒107-8481 山梨県韮崎市藤井町北下条2381-1
Capital	54,961
Consolidated sales	1,278,240
Consolidated operating profit	310,571
Consolidated total assets	1,257,627
Consolidated capital	888,117
Capital adequacy ratio	70.6%
Consolidated number of employees	13,021

 

 

 

2. Summary and Features

 
「Tokyo Electron Laboratories, Inc.(東京放送)」, which was established in Tokyo in 1963 through an investment of 「Tokyo Broadcasting System(東京放送)」, is the beginning of the current「Tokyo Electron」. At the time of its establishment, they were involved in the manufacture of B2C home appliances such as radios.

As for B2B business, they imported American mechatronics products such as diffusion furnaces, detectors, IC manufacturing equipment, and testers into Japan, and distributing them in Japan. In other words, their business activity was similar to a specialized trading company. However in 1968, they established「TEL-Thermco Engineering」in collaboration with「Thermco Products」in the United States, and started domestic production of diffusion furnaces.

In 1971, this company launched「TEL Engineering Inc.(テレ・エンジニアリング)」to strengthen the B2B business further. And in 1975, it completely withdraw from the home appliance production / export field. Instead, they decided to concentrate solely on the B2B business. After that, the ion implantation equipment production business was domestically started by「TEL」 and full-scale export of semiconductor manufacturing equipment also was initiated. In 1989, they finally acheived the world's top sales in the semiconductor manufacturing equipment industry.

Nowadays, they have been outnumbered by「AMAT」,「Lam Research」, and「ASML」, and are ranked 4th in the world. But regardless of that, they are the world's top class semiconductor manufacturing companies such as「Intel」,「Samsung Eletronics(삼성전자)」, and「TSMC」. In addition, with the great reputation for their products, this company has 11 affiliated companies in Japan and 45 affiliated companies overseas. Of course, their annual business performance is tends to be fluctuated accoding to the situation of semiconductor industry. Even though, considering the fact that they has equity ratio of around 70%, we can say it is financially stable.

 

 

 

3. Major Business

 

■ Semiconductor manufacturing equipment
They manufacture and sell Coater / Developer, plasma etching system, heat treatment film forming equipment, wafer inspection equipment, etc., which are indispensable in the wafer processing process.

■ FPD manufacturing equipment
They deal with FPD Coater / Developer for flat panel display (FPD) manufacturing.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		799,719	1,130,728	1,278,240
Consolidated operating profit		155,697	281,172	310,571
Consolidated total assets		957,447	1,208,705	1,257,627
Consolidated net assets		645,999	771,509	888,117
Breakdown of sales	Semiconductor manufacturing equipment	749,893	1,055,234	1,166,781
	FPD manufacturing equipment	49,387	75,068	111,261
	Others	438	425	197