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Chip Equipment Orders Decline

The book to bill ratio for semiconductor equipment fell to 0.84 in August, the third consecutive month the ratio declined.
Both shipments and orders for semiconductor equipment declined in August compared to July and to August 2011, according to trade association SEMI.

North-America-based manufacturers of semiconductor equipment posted $1.12 billion in orders worldwide in August 2012 (three-month average basis). The bookings figure is 9.2 percent lower than the July 2012 level of $1.23 billion, and is 3.6 percent lower than the August 2011 booking level of $1.16 billion, SEMI reported.

The three-month average of worldwide billings in August 2012 was $1.34 billion, down 7.4 percent from $1.44 billion in July and 8.4 percent less than August 2011 when shipments totaled $1.46 billion, according to the trade association.

The book-to-bill ratio for semiconductor equipment was 0.84. That means semiconductor equipment manufacturers received $84 worth of new orders for every hundred dollars of equipment that the shipped in August.

“The second half of the year continues to show reduced order and billing levels for the 2012 spending cycle,” said Dan Tracy, senior director of SEMI Industry Research and Statistics. He added that 2012 equipment revenue would likely continue to fall slightly through the year. In total, revenue would be about $40 billion.