Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (936)	5/17/2002 4:14:51 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Worldwide fab utilization will reach 82.4% in May, says new report Semiconductor book-to-bill reaches 24-month high at 1.33 in April, according to research firm Semiconductor Business News (05/17/02 14:49 p.m. EST) SAN JOSE -- Worldwide semiconductor equipment shipments are expected to grow 9.7% in May to $2.57 billion compared to $2.35 billion in April, while orders will increase 1.2% to $2.73 billion from $2.71 billion last month, said a new forecast from VLSI Research Inc. The new forecast places the worldwide chip equipment book-to-bill at 1.10 for May, down slight from a two-year high of 1.15 in April because tool shipments are increasing at a faster rate than orders. However, the forecast still paints a positive picture for semiconductor equipment suppliers, which are attempting to get back on their feet after last year's severe downturn. VLSI Research today also predicted that worldwide wafer fab capacity utilization rates will reach 82.4% in May, up from 80.2% in April. The industry's wafer-processing frontend capacity utilization rate hit bottom at 69% in December for the worldwide chip industry. In February, the rate was at 71.4%, said VLSI Research. "The 80% line is historically important because this is when most chip makers start to upgrade existing facilities fairly aggressively," said the research firm. The forecast comes one day after a new book-to-bill report for North American-based suppliers showed a reading of 1.20 in April, based on data collected by the Semiconductor Equipment and Materials International (SEMI) trade group. The new SEMI Express Report book-to-bill was at its highest point since the index stood at 1.27 in June 2000 because of a 17% increase in worldwide billings at North American suppliers (see May 16 story). VLSI Research's Industry Pulse Pro report today reported that the book-to-bill ratio for the entire chip equipment industry reached a preliminary reading of 1.15 in April, up from 0.99 in March. The research firm said the worldwide book-to-bill reading in April was the highest since May 2000. A ratio of 1.15 means suppliers were receiving $115 worth of new orders for $100 of products billed to customers. The San Jose research firm also said semiconductor markets showed strong growth in April. Based on a three-month average, semiconductor bookings were at $12.9 billion in April, while billings stood at $9.7 billion worldwide, according to VLSI Research. That combination creates a semiconductor book-to-bill of 1.33, which is the highest ratio in the last 24 months. VLSI Research is predicting that the semiconductor book-to-bill will drop to 1.14 in the seasonally weak month of May, with bookings at $11.4 billion and sales at about $10 billion.

To: Gottfried who wrote (936)	5/17/2002 5:04:03 PM
From: Kirk ©	Read Replies (2) \| Respond to of 25522

One way to look at backlog might be "Yes, we want the equipment but we can't afford to pay you for it until our orders pickup... " so it just slips out each month... waiting for chip orders to return. Still useful to track as it shows there is demand but... with a grain of salt. Kirk PS Thanks again for the great charts I like this one! suite101.com I actually took profits out of AMAT and LRCX at or close to current levels back in the last cycle as I was watching the growth of the peaks... I ignore the bubble valuation and will start to take out in another 20% give or take... and I hope to take more out than I did before... I also like Cary's idea of writing CCs to help me sell and so I get income while waiting. Anyone have a good book or web site suggestion for CC help? Thanks K