Orders for semi equipment at lowest level since 2003, SEMI reports

A book-to-bill of 0.83 means that $83 worth of orders were received for every $100 of product billed for the month.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 8/20/2008

Reflecting the pronounced cutback in capital expenditures this year, North America-based semiconductor manufacturing equipment providers posted $905 million in orders in July on a three-month average basis and a book-to-bill ratio of 0.83, according to San Jose-based Semiconductor Equipment and Materials International (SEMI).

A book-to-bill of 0.83 means that $83 worth of orders were received for every $100 of product billed for the month.

In terms of bookings, the global three-month average in July was $905 million, which is 3% less than the final June level of $934 million, and approximately 36% less than the $1.41 billion in orders posted in July 2007.

The three-month average of worldwide billings in July was $1.09 billion, which is approximately 6% less than the final June level of $1.16 billion, and about 36% less than the July 2007 billings level of $1.69 billion.

“Orders for semiconductor equipment continue reflect the pronounced cutback in capital expenditures this year and are at the lowest levels since November of 2003. While chip-makers remain attentive to cost controls, this remains a highly cyclic industry. Factory utilization levels, unit demand growth and planned fab projects suggest that new investment activity will resume in 2009,” noted Daniel Tracy, senior director of industry research and statistics at SEMI, in a statement.

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of US dollars.
 

 Source: SEMI August 2008