Pursue the generation of a positive social impact

The advancement of semiconductor technology underlies the positive social impact generated by the communications revolution through the ongoing dissemination of 5G and the next-generation 6G specifications. The company believes that semiconductors will grow to an unprecedented scale and substantially contribute to the achievement of carbon neutrality as a social requirement of humankind. TOK will contribute to the　generation of a positive social impact toward a sustainable future by further accelerating R&D and　marketing products that promote innovation.

*1 Estimated using power consumption in wind/solar power generation, EVs, and data centers, and the dissemination of next-generation power semiconductors with SiC and GaN as key factors. Train cars and commercial vehicles are excluded.

*2 Estimated power consumption by data center servers and the sustained effects of Moore’s law as key factors. The use of high-end logic semiconductors includes data centers but excludes servers and laptop PCs placed elsewhere.

Strengthen initiatives for the materials in power  semiconductors that contribute to decarbonization and carbon neutrality

In the initiatives for decarbonization and carbon neutrality as part of the latest and largest social issues, Countries plan investments of nearly ¥500 trillion over the next ten years.*1 In addition, GFANZ*2 plans investments and loans of approximately ¥11 quadrillion (US$100 trillion) through a coalition of voluntary financial Institutions from Japan and overseas. These represent major expectations in the resolution of issues by firms and businesses around the world. Under these circumstances, the market scale of power semiconductors is expected to further expand as the heart of EV/HEV and energy-saving home appliances while supporting the renewable energy systems of wind power and solar power generation, as well as efficient power transmission and supply based on smart grids.

※1 Source: JEITA Semiconductor Subcommittee, “Semiconductor Strategies for Achieving Increased International Competitiveness”
※2 Glasgow Financial Alliance for Net Zero (GFANZ): a global coalition of more than 450 leading financial institutions that officially took effect at COP26 in Glasgow, UK, in 2021

One of the triggers leading the unprecedented growth of the semiconductor industry — Power semiconductors

Growth in the power semiconductor market has started to accelerate and has now become one of the triggers leading the unprecedented growth of the semiconductor industry TOK has the largest global market share of g/i-Line photoresists, which are essential for the manufacture of power semiconductors, and consistently account for 7% to nearly 10% of consolidated net sales. At present, TOK continues mass production at full capacity in response to the market growth of power semiconductors. Under the TOK Medium-Term Plan 2024, the Company promotes large-scale capital investments to increase equipment and efficiency in manufacturing plants (automation and mechanization) and to renew the manufacturing, inspection, and warehouse equipment.

Source：
Status of the Power Electronics Industry 2021 report,
Yole Developpement, 2021

Developing high-value-added/next-generation materials

In order to steadily advance initiatives for decarbonization and carbon neutrality and thus limit global warming to 1.5°C, the further upgrading and performance increase of power semiconductors are required. To this end, TOK is committed to providing and developing new high-value-added and next-generation materials. TOK developed proprietary i-Line thick-film photoresists of the chemically amplified type for the growing demand for high-performance power devices. The Company is also striving to develop materials for next-generation SiC (silicon carbide), GaN (gallium nitride), and Ga2O3 (gallium oxide) power semiconductors.

Long-run creation of shared value

The market for g/i-Line photoresists and other power semiconductor materials consists of many customers involving long-term transactions. TOK pursues long-term sustainable growth by maintaining relationships of trust on a long-term basis. Moreover, the amount and thickness of g/i-Line photoresists vary by customer, in addition to substantial differences in the amounts used. By continuously providing detailed service under the proprietary customer-oriented strategies, the Company will create long-run shared value toward decarbonization and carbon neutrality.