SEMI: July book-to-bill at 0.84

By Colleen Taylor, Contributing Editor -- Electronic News, 8/17/2007

The book-to-bill ratio for North American-based manufacturers of semiconductor equipment dipped well below parity in July to 0.84, according to the latest research from global industry association SEMI.

SEMI said that equipment makers posted $1.44 billion in orders in July on a three month average basis, down 10 percent from the final June level of $1.61 billion and 17 percent less than the $1.73 billion in orders posted in July 2006.

Meanwhile, the three-month average of worldwide billings in July was $1.71 billion, down 3 percent from the final June level of $1.77 billion and 4 percent higher than the July 2006 billings level of $1.64 billion.

Accordingly, July's book-to-bill ratio was 0.84; a book-to-bill of 0.84 means that $84 worth of orders were received for every $100 of product billed for the month.
 
"The declining book-to-bill ratio is based on lower order levels for new semiconductor manufacturing equipment," Stanley T. Myers, president and CEO of SEMI, said in a statement. "Orders have slowed from the strong levels observed in the first part of this year and are at levels last seen in November of 2006."

Indeed, July's book-to-bill shows a marked difference from the past few months in the industry. In June, SEMI reported that equipment makers had a book-to-bill ratio of 0.94; in May, the ratio was at 1.00, and April's, which was initially reported at 1.00, was finally calculated at 0.98.

The North American region is not the only equipment market seeing a slowdown in orders of late. SEMI reported earlier this week that the worldwide semiconductor equipment industry's book-to-bill ratio stayed below parity at 0.92 in Q2, with $10.22 billion in orders and $11.06 billion in billings.