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Chip Equipment Book-to-Bill Ratio Falls for Second Straight Month



Demand for semiconductor equipment appears to be easing as the book-to-bill ratio for semiconductor equipment dropped for the second straight month.
The book-to-bill ratio for semiconductor equipment declined for the second straight month, indicating that chipmakers are ordering less equipment.

The chip equipment book-to-bill ratio in June was 0.94, down from 0.97 in May and 0.98 in April, according to trade association SEMI. A book-to-bill of 0.94 means that for every $100 of orders that shipped in June, equipment manufacturers received only $94 in new orders.

North America-based manufacturers of semiconductor equipment posted $1.55 billion in orders in June 2011, which is 4.4 percent less than the final May 2011 level of $1.62 billion. It is also 10.3 percent below the $1.73 billion in orders posted in June 2010.

The three-month average of worldwide billings in June 2011 was $1.65 billion. The billings figure is 1.1 percent less than the final May 2011 level of $1.67 billion, and 12.5 percent more than the June 2010 billings level of $1.47 billion.

“Billings are up year-over-year and three-month average billings are relatively consistent,” said Stanley Myers, president and CEO of SEMI. “We will monitor bookings strength for indications of year-end or seasonal softening, but no definitive data trend is apparent yet.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.

SEMI is an industry association for the microelectronic, display, and photovoltaic industries.

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