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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (10640)	7/18/2003 2:06:02 AM
From: StanX Long	Read Replies (1) \| Respond to of 95487

RTS, more good news, Stan. VLSI raises chip-equipment forecast for '03 By Mark LaPedus Semiconductor Business News 07/17/2003, 8:00 PM ET siliconstrategies.com SAN JOSE, Calif. -- Amid a depressing week at the Semicon West trade show, there is finally some good news in the marketplace: VLSI Research Inc. has slightly raised its forecast for the semiconductor equipment industry in 2003. VLSI Research originally predicted that the chip-equipment industry would grow 5.6 percent to $31.3 billion in 2003 over 2002. In its new forecast, the San Jose-based research firm now projects that the fab-tool market will grow 6.4 percent to $31.5 billion. The firm did not alter its 11 percent growth forecast for ICs in 2003. For ICs, the rolling three-month average of the book-to-bill ratio reached 1.10 in June, up from 1.02 in May. Worldwide bookings were at $11.93 billion and billings were at $10.82 billion last month. IC Billings represent the average of WSTS sales data for April and May and VLSI Research's estimate for June. Capacity utilization rate was at 87.3 percent in June. Capacity is tight at the sub-150-nm nodes and 180-nm is past the buy point of 85 percent. Although IC book-to-bill continues to improve, the equipment industry remains sluggish in spite of a slight increase in the overall forecast. "While optimistic, customers are cautious and lack confidence," according to VLSI Research. "This is the case up the supply chain and shows how anemic this recovery is. The end demand is not there and there is no real driver emerging. It is all very reliant on what happens with the U.S. economy in the 2H03." The news at Semicon was also bad. During the week, Applied Materials Inc. and ASML Holding NV separately announced huge layoffs. And the equipment industry in general indicated that the order rates were dismal. But the trends are looking up for fab-tool makers. The worldwide semiconductor equipment book-to-bill ratio was at 0.98 in June 2003, up from 0.95 in May, according to VLSI Research. In July, the book-to-bill is expected to hit 1.00, the company said. Worldwide equipment bookings amounted to $2.595 billion in June, while billings were at $2.654 billion. In comparison, bookings and billings were $2.367 billion and $2.487 billion, respectively, in May. Of the billings, $1.530 billion were for wafer processing equipment, $595 million for test and related equipment, $176 million for assembly, and $352 million for service and spares