The locations of process-induced defects in hydrogenated amorphous silicon thin-film transistors (a-Si:H TFTs), which are used as elements of active-matrix liquid crystal displays, were investigated by combining focused ion beam techniques with cross-sectional transmission electron microscopy (X-TEM). The FIB technique is applied to TFT failure analysis problems, which require considerable localised etching without inducing mechanical stress or damage at fragile failure locations. We demonstrate the manner in which these techniques are used to characterise TFT defects such as pinholes and portions of the multilayer damaged by mechanical stress. A dramatic improvement brought about by the FIB technique is the increase in temporal efficiency of sample preparations. X-TEM observations also lead to identification of the fault and analysis of its cause, which in turn lead to a marked yield improvement.