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Tokyo Electron identifies digital twins as primary challenge for semiconductor manufacturing digital transformation
Wednesday, February 18, 2026 at 06:40 AM
Tokyo Electron is focusing on digital twins as a core component of its digital transformation strategy in semiconductor manufacturing to address production efficiency and equipment optimization.
Context
Tokyo Electron (TEL) has identified digital twins as the primary challenge for its digital transformation strategy in semiconductor manufacturing. As the industry advances toward the 1nm scale, the complexity of device structures and processing parameters has exceeded human management capacity, making AI-driven virtual replicas a necessity. To address this, TEL introduced Epsira, a new solution concept that integrates AI and robotics to optimize equipment performance and field productivity.
This strategic shift is supported by a massive ¥1.5 trillion R&D investment and ¥700 billion in capital expenditures planned through 2029. TEL aims to leverage these digital technologies to maintain its competitive edge in a global semiconductor market projected to reach $1 trillion by 2030. By mastering digital twins, the company expects to drastically reduce development cycles and operational costs, positioning itself to capture the 70% of industry growth driven by the surging demand for advanced AI hardware.
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