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Orders for New Semiconductor Equipment Decline

The book-to-bill ratio for semiconductor equipment dropped to 0.94 as orders for new equipment declined.
Orders for semiconductor equipment fell 9.8 percent in June to $1.46 billion compared to May when orders totaled $1.61 billion, according to trade association SEMI.

The three-month average of worldwide bookings in June 2012 was 5.5 percent lower than the June 2011 order level of $1.54 billion, SEMI reported.

The three-month average of shipments (billings) in June 2012 was $1.55 billion, 1 percent more than the final 2012 billings total of $1.54 billion. Worldwide billings were 5.2 percent less than June 2011 when billings totaled $1.64 billion, according to SEMI.

Semiconductor equipment book-to-bill ratio was 0.94. That means semiconductor equipment manufacturers received $94 in new orders for every $100 of orders they shipped in June. The ratio was down from 1.05 in May.

“Following seven months of increases, the three-month average bookings declined in June and likely reflects some slowing in investment plans attributed to weaknesses in the broader economy,” said Denny McGuirk, president and CEO of SEMI. However, McGuirk added that while orders have declined, equipment spending this year will continue to be directed towards advanced technologies in wafer processing and packaging assembly.