Tokyo Electron Device : Announcement of Termination of Distributor Agreement with a Major Business Partner

	February 21, 2020
Company name:	TOKYO ELECTRON DEVICE LIMITED
Representative:	Atsushi Tokushige
	President & Representative Director
	(TSE First Section, Stock Exchange Code: 2760)
Contact:	Hiroyuki Akinaga
	Director, Corporate Communications Department
TEL:	[phone]

Announcement of Termination of Distributor Agreement with a Major Business Partner

TOKYO ELECTRON DEVICE LIMITED (the "Company") hereby announces its decision to terminate the distributor agreement with its major business partner Broadcom Inc. (name of its Japanese subsidiary: Avago Technologies Japan, Ltd. Hereinafter referred to as "Broadcom Inc." in this document), as per the following.

1. Background of the termination

While engaged in the sales of various products as a sales representative of Broadcom Inc., the Company has decided to terminate the distributor agreement with the company on March 1, 2020, following changes in its distributorship policies in Japan.

2. Outline of the business partner

Name	Broadcom Inc.
Location	United States
Business description	Design, manufacture and sales of semiconductors, electronic components, Fibre
Channel switches, etc.
	Capital relationship	Not applicable
Relationships between the	Personal relationship	Not applicable
Company and the business	Business relationship	Purchase and sales of the company's
partner	products
	Status of related parties	Not applicable

3. Description of transactions

1. Type of transaction: Purchase and sales of products manufactured by the company
2. Actual net sales (for the fiscal year ended March 31, 2019)

Company name	Net sales	Ratio against the Company's
		consolidated net sales
Broadcom Inc.	¥16,981 million	12.0%

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4. Future outlook

Transactions with Broadcom Inc. are scheduled to be terminated on March 1, 2020. Details for the transfer of business, etc. will be discussed between the parties.

The termination will have no impact on the Company's financial results for the fiscal year ending March 31, 2020.

Going forward, the Company will strategically reallocate various resources, including human resources involved in the activities as a sales representative of Broadcom products, to promoting sales of its existing products, expanding business through a planned transfer of commercial rights, and introducing new products. The Company believes that this shift will greatly contribute to improving its business performance.

(Reference) Consolidated financial forecasts for the current fiscal year (announced on October 30, 2019) and consolidated financial results for the previous fiscal year

			(Millions of yen)
			Net income
	Net sales	Ordinary income	attributable to owners
			of parent
Consolidated financial forecasts for
the current fiscal year	138,000	3,500	2,200
(Fiscal year ending March 31, 2020)
Consolidated financial results for the
previous fiscal year	141,000	3,077	2,341
(Fiscal year ended March 31, 2019)

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