Environmental technologies

TOK aims to have an even greater social impact by continuing to win at the world’s forefront

Through the journey to date, Tokyo Ohka Kogyo (TOK) has become convinced through numerous experiences that practicing the management principles and implementing the purpose not only enhances social value but also increases the economic value, sharpens business competitiveness, and leads to having an even greater social impact. Advances in semiconductor technology underlies the positive social impact generated by the communications revolution through the ongoing use of generative AI, the progress of robotics, and the arrival of next generation 6G specifications. The company believes that semiconductors will substantially contribute to the achievement of carbon neutrality as a social requirement of humankind.

The expected social impact by 2030 shown below quantifies the expected value of the social impact that TOK can contribute by 2030 based on product market shares in each value chain. As the market share of TOK in innovative fields continues to grow, the social impact contributed by TOK will also increase. Therefore, in the tok Medium-Term Plan 2027 starting from fiscal year 2025, the company set No. 1 in Global Market Share for Innovative Photoresists as the top priority objective, and TOK is striving to continue winning the race to the world’s forefront.

Social issues (examples)	Solutions and value chain	Expected social impact by 2030
Improving efficiency of renewable energy systems	[TOK] Development and provision of photoresists for next-generation power semiconductors ▼ [Semiconductor manufacturers and device manufacturers] Evolution and mass production of next-generation power semiconductors Improved efficiency of EVs and wind/hydropower generation systems	Reduction of global power consumption by approximately 0.4%*¹
Increased power consumption due to the rapid expansion of data centers	[TOK] Development and provision of EUV photoresists ▼ [Semiconductor manufacturers and device manufacturers] Reduction of power consumption per computational session by logic semiconductors Reduction of power consumption at data servers	Reduction of global power consumption by approximately 0.2%*²

Social issues
(examples)

Solutions and value chain

Expected social impact
by 2030

Improving efficiency
of renewable energy systems

[TOK] Development and provision of photoresists for next-generation power semiconductors
▼
[Semiconductor manufacturers and device manufacturers]

Evolution and mass production of next-generation power semiconductors
Improved efficiency of EVs and wind/hydropower generation systems

Reduction
of
global power consumption
by approximately 0.4%*¹

Increased power consumption
due to the rapid expansion of data centers

[TOK] Development and provision of EUV photoresists

▼
[Semiconductor manufacturers and device manufacturers]

Reduction of power consumption per computational session by logic semiconductors
Reduction of power consumption at data servers

Reduction
of
global power consumption
by approximately 0.2%*²

*1 Estimated from the use of power from wind and solar power generation consumed by 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.

*2Estimated 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 in use elsewhere.

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

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 nearly 10% of consolidated net sales.

We deployed an expansion project for SiC/GaN power semiconductor materials in 2024 where medium to long-term demand growth is expected in decarbonization applications, and we were able to expand sales as targeted. Looking ahead, as power-saving needs will increase even more with the further spread of generative AI, we plan to focus on developing high heat-resistant materials for the latest generation of power semiconductors, such as Ga2O3 power semiconductors, to make the world’s top market share of these photoresists rock solid.

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.