Tokyo Electron Device : Announcement of Termination of Distributor Agreements with Major Business Partners

November 1, 2017

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 Agreements with Major Business Partners

TOKYO ELECTRON DEVICE LIMITED (the "Company") hereby announces its decision to terminate the distributor agreements with its major business partners Analog Devices International ("Analog Devices") and Linear Technology KK ("Linear Technology"), as per the following.

1. Background of the termination

   While engaged in the sales of various semiconductors as a sales representative of Analog Devices and Linear Technology, the Company has decided to terminate the distributor agreements with the two companies on January 31, 2018, following changes in their distributorship policies in Japan. As Linear Technology Corporation was acquired by Analog Devices, Inc. in March 2017, the above termination shall actually be the termination of business with a single entity.

2. Outline of the business partners

   Name	Analog Devices International	Linear Technology KK
   Location	Ireland	Chiyoda-ku, Tokyo
   Business description (Note)	Design, manufacture and sales of analog integrated circuits (ICs), mixed-signal ICs, digital signal processing (DSP) ICs, etc.	Design, manufacture and sales of a broad line of high-performance analog ICs for communications, networking, industrial use, automotive, computers, etc.
   Relationships between the Company and the business partners Capital relationship	Not applicable	Not applicable
   Personal relationship	Not applicable	Not applicable
   Business relationship	Purchase and sales of the company's products	Purchase and sales of the company's products
   Status of related parties	Not applicable	Not applicable

   (Note) The business description above refers to Analog Devices, Inc. and the former Linear Technology Corporation.

3. Description of transactions

4. Type of transaction: Purchase and sales of products manufactured by each company

5. Actual net sales (for the fiscal year ended March 31, 2017)

   Company name	Net sales	Ratio against the Company's consolidated net sales
   Linear Technology	¥8,199 million
   Analog Devices	¥5,926 million
   Total	¥14,126 million	10.7%

6. Future outlook

Company name	Scheduled date of transaction termination*
Linear Technology	January 31, 2018
Analog Devices	April 30, 2018

* As of November 1, 2017, transactions with each company are scheduled to be terminated on the above dates.

Details for the transfer of business, etc. will be discussed between the parties.

The termination is expected to have an immaterial impact on the Company's financial results for the fiscal year ending March 31, 2018.

For the fiscal year ending March 31, 2019 and thereafter, the Company shall be committed to minimizing such impact by working on further sales promotions of its existing products and strengthening its own brand business.

(Reference) Consolidated financial forecasts for the current fiscal year (announced on September 28, 2017) and consolidated financial results for the previous fiscal year

(Millions of yen)

Net sales	Ordinary income	Net income attributable to owners of parent
Consolidated financial forecasts for the current fiscal year (Fiscal year ending March 31, 2018)	154,000	2,000	1,200
Consolidated financial results for the previous fiscal year (Fiscal year ended March 31, 2017)	131,855	1,377	972