Tokyo Ohka Kogyo : All pages (two-page spread, for viewing on a computer) （13.29 MB）

Integrated Report 2021

Year Ended December 31, 2021

0.000000001 m

Deepens the World

Purpose:

The meaning of the existence of TOK

Contributing to

a sustainable future through chemistry

Management Principles

Create a frank, open-minded business culture, continue efforts to enhance technology, raise the level of quality of products,

and contribute to society

Management Vision

"The e-Material Global Company®" contributing to a sustainable future through chemistry

CSR Policy

• Increases the sustainable corporate value as a whole group by improving employee engagement.
• Continues to provide high-value-added products that contribute to technological innovations in order to resolve social issues.
• Strives to grow together with society and remain as an attractive company that earns the trust of all stakeholders.

Integrated Report 2021 001

10,000-

1,500 nm

TOK Photoresists

Sources of Value Creation1

- World-leading microprocessing technology

TOK is the manufacturer with the largest global market share for semiconductor photoresists.*2 TOK's purpose of contributing to a sustainable future through chemistry is supported and prac-

ticed by the three core competences of microprocessing technology, high purification technology, and customer-oriented strategies.

TOK developed semiconductor photoresists for the first time in 1968, and since that time, the company has continuously upgraded its microprocessing technology, which contributes to the higher performance, lower power

	Initiatives to Address Material Issues
Value Creation Story	Data Section
for Enhancing Corporate Value

Value creation area = 1 nanometer*1
	2021
0.000000001 m
	Aggregate market value
		Highlights
	¥289.6 billion*
*1 Approx. 1/100,000 of the thickness of a hair	4

Energy-saving effect through

semiconductor miniaturization pursued

by TOK over the past 50 years

Approx. 1/4,000,000*6

consumption, lower cost, and smaller size of semiconductors,Semiconductors thereby consistently satisfying social expectations with its final products.

Social

Social

expectation

Always satisfying social expectations with microprocessing technology

Social

expectation

Social

expectation

Social

networking

expectation

Promotion of

decarbonization

Achieving

a new normal

2020s

Social

expectation

More efficient

economic activities

1970s

Social

expectation

More advanced

information processing

1980s

More advanced communication

1990s

2000s

2010s

Examples of final products Calculators*3

Outputs

First semiconductor positive photoresist developed in Japan

1970s

Trends of line Line width of semiconductors width of semi-

conductors*5 ▶

Examples of final products

PC

Outputs

i-Line photoresists

Trends of aggregate market value of TOK*4 ▶

1980s

Line width of semiconductors

1,500-

600 nm

Examples of final products

Feature phones

Outputs

KrF excimer laser photoresists

1990s

Line width of semiconductors

600-

130 nm

Examples of final products

High-performance PC

Examples of final products

General electronic products

Outputs

Examples of final productsEUV photoresists

Smartphones

Outputs

Full portfolio

Outputs

ArF excimer laser photoresists

2000s	2010s-	Since the 2020s
Line width of semiconductors	Line width of semiconductors	Line width of semiconductors
130-	32-	5 nm
32 nm	7 nm

*2 Based on the sales quantity of EUV, ArF, KrF, g-Line, and i-Line photoresists in 2021 (calculated by TOK and based on Fuji Keizai "Current Status and Future Outlook of Semiconductor Material Markets 2022")

*3 The photos of examples of final products on this page are conceptual images.

*4 Calculated on the basis of the closing stock price at each term end and the number of shares issued (including treasury stock); The scale of the conceptual graph of aggregate market value does not strictly match the year indications of topics.

002TOKYO OHKA KOGYO CO., LTD.

*5 Includes TOK's estimates for the decades shown

*6 A rough estimate for two-dimensional semiconductors (1970: 10,000 nm ➞ 2022: 5 nm); Based on scaling laws where miniaturization in line width to approximately 1/2,000 of the original size leads to power consumption of approximately 1/2,0002, or approximately 1/4,000,000.

Integrated Report 2021 003

Sources of Value Creation2

- World-leading high purification technology

		The second core competence of TOK is its high purification technol-
		ogy, which has been continuously upgraded since its foundation
		with a longer history than microprocessing technology.
		Our fine chemical products leveraged high purification technol-
		ogy, which satisfied many social expectations in the early post-war
		era of Japan. Following the subsequent global deployment, the
		technology provides customers around the world with high-purity
TOK's high-purity
chemicals & photoresists	Semiconductors	chemicals and semiconductor photoresists that substantially
		contribute to higher productivity (yield) and the saving of resources
		in the semiconductor industry.

Always satisfying social expectations with high purification technology

Source

1940 Original management principles presented by the founder Shigemasa Mukai

• "Create a frank and open-minded business culture, continue efforts to enhance our technology, raise the quality levels of our products, and contribute to society"

	Initiatives to Address Material Issues
Value Creation Story	Data Section
for Enhancing Corporate Value

Level of impurities in TOK's cutting-edgehigh-purity chemicals
2021
Less than 1/1,000,000,000,000
Highlights

Consolidated net sales

¥140.0 billion

Trends in level of high purification (impurities)*1

1970s	1980s	1990s	2000s	2010s		2020s
Level of	Level of	Level of	Level of	Level of			Level of
impurities	impurities	impurities	impurities	impurities			impurities
≤ 1 ppm	≤ 100 ppb	≤ 1 ppb	≤ 100 ppt	≤ 10 ppt		≤ 1 ppt

*1 1 ppm = 1/1,000,000; 1 ppb = 1/1,000,000,000; 1 ppt = 1/1,000,000,000,000

Source

Frank and open- minded business culture

Foundation

	Social		Social
	expectations		expectations
	Safety of		Development of
	workers		culture
40s		1950s
-
1930

	Social		Social		Customer
	expectations		expectations		expectations
	Higher		Resource saving		Higher
		and environmental
	productivity			purification
2	2	contribution
1970s*		2000s*		2020s

	Examples of final products	Outputs	Examples of final products
	Black-and-white TVs
	Batteries used in hard hat	The first high-purity
Shigemasa Mukai, TOK founder
lights for coal miners	potassium silicate
	Outputs	produced in Japan,
	The first high-purity potassium	Ohka Seal
	hydroxide produced in Japan

*2 Includes estimates by TOK for the decades shown.

The scale of the conceptual graph does not strictly match the year indications of topics.

Trend diagram of

TOK's net sales ▶

004TOKYO OHKA KOGYO CO., LTD.

Value provided	Value provided		Value provided
Higher yield in semi-	Reduced material		Pursuing defect-free
conductor production	loss in semiconductor		semiconductor
	production		production by
			leveraging super
Outputs	Outputs	Outputs	cleanrooms
High-purity chemicals and	High-purity chemicals and	High-purity chemicals and
semiconductor photoresists	semiconductor photoresists	semiconductor photoresists

Integrated Report 2021 005

Intel Corporation

EPIC Distinguished

Supplier Award (2022)

Sources of Value Creation3

	Initiatives to Address Material Issues
Value Creation Story	Data Section
for Enhancing Corporate Value

- Customer-oriented strategies

Customer-oriented strategies are the strengths that continuously advance the benefits of microprocessing technology and high purification technol- ogy, and TOK delivers them to all parts of the world.

TOK opened its first overseas site in 1987 and accelerated overseas expansion as the offshoring of the semiconductor industry proceeded.

In 2012, the company established a customer-oriented site in South Korea with its trifecta of development, manufacturing, and marketing functions.

The company also promotes the same strategies in Taiwan and the United States and is engaged in long-term research and development activities based on a close relationship of trust with leaders in the global semiconductor industry.

Texas Instruments Inc.

Supplier Excellence Award

(2018)

Overseas sales growth rate over the past 10 years (FY 2012/3 vs. FY 2021/12)

109% (2.1-fold)

2021

Highlights

Overseas sales ratio

78.8%

Number of employees

(consolidated)

1,816

Continuously expanding social and relational capital to all parts of the world

Overseas

expansion

Overseas		Taiwan	Overseas
expansion			expansion
USA	1998		China
1987			2004

2012

Customer-

oriented

South Korea	Customer-
	oriented
	Taiwan

2014

Customer-

oriented

Taiwan

2016

First overseas site in Asia

TOK Taiwan Co., Ltd.

(Miaoli plant)

First overseas site	Trend diagram of	First manufacturing site in China
TOK employees* ▼
Ohka America, Inc.	Chang Chun TOK (Changshu) Co., Ltd.
(present TOK America)		(Changshu plant)

Contributing to a sustainable future through chemistry and long-run research and development under customer-oriented strategies

Long-run research and development (approx. 10 years)	2003
Photoresists for	Release and
image sensors	growth
* Employees since FY 1986/11 (unconsolidated until FY 2001/3 and consolidated since FY 2002/3); EUV photoresists
The scale of the conceptual graph does not strictly match the year indications of topics.

The trifecta of development,		The trifecta of development,
manufacturing, and marketing		manufacturing, and marketing
TOK Advanced Materials Co., Ltd.		TOK Taiwan Co., Ltd.
	Upgrading the customer-oriented strategies	(Tongluo No. 2 plant)
	TOK Taiwan Co., Ltd.
	(Tongluo plant)

Long-run research and development (approx. 10 years)	2019
MEMS materials
Growth
Long-run research and development (approx. 20 years)	2019

Release and

growth

006 TOKYO OHKA KOGYO CO., LTD.

Integrated Report 2021 007