Chip gear industry starts 1999 with SEMI Book-To-Bill Above Parity at 1.10
February 19, 1998 Electronic News Today
A day after unveiling an index designed to increase investor awareness of the chip equipment and materials industry, Semiconductor Equipment and Materials International (SEMI) gave investors a reason to give the industry another look, namely a book-to-bill ratio well above parity. The North American semiconductor equipment industry posted a book-to-bill ratio of 1.10 for January 1999, SEMI reported today. The ratio means $110 in orders were received for each $100 worth of products shipped. It puts an emphatic end to a 1998 spent below parity and the figure stands far removed from the 0.57 low-point reached in September, just 4 months ago. The new threshold was achieved through a combination of steadily improving orders and slightly lower shipments.
"This is the fourth month of sequentially greater order levels," said Stanley Myers, president of SEMI. "While we have not seen a rash of announcements for new semiconductor facilities to be built in 1999 and 2000, the January order level indicates that aggressive activity in both fab conversions and backend upgrades for the newest chip designs should continue to improve equipment industry business levels in 1999." Three-month average shipments in January 1999 remained low at $868 million, three percent below the December 1998 level, and 41 percent below the January 1998 level. In contrast, three-month average bookings increased in January 1999 to $958 million, 10 percent above the December 1998 level. The figure remains 30 percent below the January 1998 level. SEMI: 650 940-6953.
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