North American semi equipment January book-to-bill reflects reduction in capital spending

The Semiconductor Equipment and Materials International industry association reported Thursday in its book-to-bill ratio for North America-based manufacturers of semiconductor equipment that $1.12 billion in orders were posted in January, on a three-month average basis, a book-to-bill ratio of 0.89. A book-to-bill of 0.89 means that $89 worth of orders was received for every $100 of product billed for the month.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 2/22/2008

The Semiconductor Equipment and Materials International (SEMI) industry association reported Thursday in its book-to-bill ratio for North America-based manufacturers of semiconductor equipment that $1.12 billion in orders were posted in January, on a three-month average basis, a book-to-bill ratio of 0.89.

A book-to-bill of 0.89 means that $89 worth of orders was received for every $100 of product billed for the month.

The three-month average of worldwide bookings in January was $1.12 billion, which is 3% lower than the final December 2007 level of $1.16 billion and 22% less than the $1.45 billion in orders posted in January 2007. 

The three-month average of worldwide billings in January 2008 was $1.27 billion. The billings figure is about seven percent less than the final December 2007 level of $1.36 billion and about twelve percent less than the January 2007 billings level of $1.45 billion.

Stanley T. Myers, president and CEO of SEMI said in a statement regarding the results, “Orders remain below levels reported in early 2007 and are consistent with the reduction in capital spending announced by many device manufacturers. While new capacity will be added this year, the industry appears cautious about new investments in the near term.”

SEMI reminded that the book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North America-based semiconductor equipment manufacturers.

The February SEMI book-to-bill report is scheduled for publication on March 18.