Tokyo Electron AT develops and manufactures plasma etching systems, single wafer CVD systems and FPD etching/ashing systems. The company is the top-runner in semiconductor/FPD manufacturing systems, and has the world’s largest share. Although the Matsushima Plant in Miyagi Prefecture manufactures some of the products, most of the development work and manufacturing is currently done at the Nirasaki Plant in Yamanashi Prefecture near Tokyo. The Nirasaki Plant has no free land, however, and the company strongly felt “the need to build a new plant when it took into account the continued expansion of the global market and the position the company should be in ten years�Etime.�Esays Mr. Kurono.
The company’s choice of the site for its new plant was the Taiwa Research Park (tentative name) in Taiwa Town, Miyagi Prefecture. Adjoining Sendai City, the Taiwa Research Park offers easy access from downtown Sendai. It is also close to one of the Tohoku Expressway exits. On the new plant, Mr. Kurono states, “unlike existing plants, it needs to focus on development and constantly spreading new technology across the world.�EIn order to achieve the goal of building the ideal plant, the company has launched the “No.1 in the World Project,�Einvolving all sections of the company. Amidst the globalized semiconductor market competition, Tokyo Electron AT has decided on Tohoku as the arena to implement its growth strategy.

�EWhy Tohoku of all places?
Mr. Kurono says, “We understand that about 70 percent of our company’s added value comes from the development sector. Human resources that support the developmental and technological forces are, therefore, the most important resource of our company. Tohoku is very attractive because the region has so much to offer in terms of human resources.�ETohoku has the second largest economically active population after Tokyo. The company expects to attract talented and skilled people from various parts of Tohoku by locating their base in Sendai. Tokyo Electron AT has come to the conclusion that it would have a much greater advantage than being based in Yamanashi and trying to call in people from the Tokyo Metropolitan Area.
Regarding employee settlement, one of the most deciding factors is whether or not a favorable living and working environment is provided in the area. The strength of Taiwa Research Park is that it neighbors a well-developed and extensive living complex, is surrounded by a rich natural environment, and that JR Sendai Station is easily accessible. It has been chosen as “the perfect location for a smart company.�E/p>

There is another major factor that pushed Tokyo Electron AT into its decision �EGovernor Murai and Miyagi Prefecture’s eager invitation. Mr. Kurono’s following account speaks eloquently of the eagerness of the governor. “After it was decided that a new plant would be built in Taiwa Town, employees at the Yamanashi Plant and their family went on overnight on-site excursions on more than ten occasions. On all occasions, Governor Murai came over to say hello to the participants.�EHe adds, “Miyagi Prefecture has promised to support us in every possible way. We, therefore, expect prefectural officials to sincerely help our employees who are concerned about matters such as housing and childcare.�E Naturally, Tokyo Electron AT understands the importance of being integrated into the local community. Projects that include the acquisition of naming rights for the Miyagi Prefectural Auditorium and posting of company advertisements on major railway stations and the Shinkansen trains are under way.
In fact, Tokyo Electron AT has actually had connections with Tohoku. The Miyagi Plant (Matsushima Town) has been in operation since 1997, and one of the group companies is also located in Iwate Prefecture in the region. The Miyagi Plant in particular, which is currently operating under full capacity, has successfully steered through the ever-changing semiconductor market trend and expanded business. Such achievements seem to have contributed to the company’s positive evaluation that “Tokyo Electron AT holds a sense of closeness towards Tohoku,�Esays Mr. Kurono.

Even though it is for certain that the global semiconductor market will continue to grow, the reality in the arena of development/cost competition is that “Nothing is certain,�Esays Mr. Kurono. Under such circumstances, Mr. Kurono explains the future path Tokyo Electron AT wishes to take: “New technology is the lifeblood, and our company expects to have as many encounters with various unique technologies, or “seeds.�EWhile we have engaged in collaborative study with Tohoku University, we have not yet built collaborative networks with other “seeds�Ein other universities in Tohoku and the “seeds�Eamong local companies conducting collaborative studies with such universities. It is in this context that we want to pursue “industry-industry-academia�Ecooperation within Tohoku.

Many rival companies have shifted their manufacturing bases to emerging countries such as China, but Tokyo Electron AT has decided to operate domestically and chose Tohoku. While most of the companies running Chinese plants have only shifted their manufacturing sector offshore, the planned Tokyo Electron AT plant serves as an integrated center that runs both development and production. Combining speedy introduction of new technology, which can be attained through the integration of development and production, with Tohoku’s high R&D potential will override the merit of lower costs achieved by moving offshore to China. It has, therefore, been concluded that the company would be more competitive than rival companies. Mr. Kurono explains, “If we make further efforts to enhance productivity, we will comfortably manage without an overseas production base.�E
Tokyo Electron AT looked at the shape of the company in ten to twenty years time. They found the answer in venturing into Miyagi and drawing on Tohoku “intelligence�Eand “people�Eas their new plant platform for competing to the world.�E/p>