Expect a pick up in memory

SEMI this morning released its Q2 book-to-bill numbers with a ratio of 0.92, compared to a Q1 ratio of 0.97.  Stan Myers points out that the industry is still in good shape, though, and that while 2007 won’t see much growth – SEMI is estimating a mere 1 percent for the semiconductor manufacturing equipment market – it will be on par with 2006. 

Myers also points out that investment from memory manufacturers was modest in Q2 as compared to Q1. Expect a pick up in memory. Colleen Taylor, our contributing editor, this week examined the NAND segment and demand driven by the upcoming holiday shopping season and Apple’s iPhone. In short, healthy demand, especially for Samsung because of its presence in Apple’s high-selling holiday gifts, could cause NAND prices to climb in the current quarter.

SEMI has also stated that despite falling memory prices, “companies continue to spend big on 300-mm fabs,”  which could steady supply and demand as we move into 2008.

Thoughts?