Chip gear index rises but order rate still weak
semibiznews.com
A service of Semiconductor Business News, CMP Media Inc.
Story posted 8:30 a.m. EST/5:30 a.m., 12/18/98
By Will Wade
MOUNTAIN VIEW, Calif.--Orders for advanced IC production systems are
helping to prop up the troubled semiconductor equipment industry but current
business levels are nearly half as much as they were in 1997, according to the
Semiconductor Equipment and Materials International (SEMI) trade group
here.
SEMI's latest book-to-bill ratio for North American semiconductor equipment
suppliers reflects steady improvement in sales during November, but revenues
were running about 41% lower than they were in the same month last year.
For November, SEMI's book-to-bill index rose to 0.84 from a revised 0.75
figure for October. A ratio of 0.84 indicates that $84 in new orders are being
received for $100 worth of products shipped. The SEMI index has not been at
parity since November 1997 when it stood at 1.0.
"Technology buys are certainly going ahead as planned in the semiconductor
industry," said Stanley Myers, president of SEMI. "However, keep in mind
that current business levels for the equipment industry are running about half
of 1997. Technology purchases alone will not return the equipment and
materials industry to its former profitability. We certainly hope to get to the
point where significant new capacity is needed before the year 2000."
Using a three-month moving average, SEMI figures that North American
semiconductor equipment suppliers shipped only $962.9 million of systems in
November compared to $1.634 billion in the same month last year. The
November shipments were up 15% over $834.4 million in October, however.
Orders for semiconductor equipment were 51% lower in November than a
year ago. Bookings stood at just $805.0 million last month vs. $1.633 billion in
November 1997. Compared to October, however, new equipment orders were
up 29% from $623.5 million. The average shipments for November was $963
million, an increase of 15% over the October results, but 41% below the
November 1997 figures. Booking for the month $805 million, a jump of 29%
from the preceding month, but down 51% from the same period last year.
SEMI calculates its figures using three-month average booking and shipment
information. |
