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North American semiconductor equipment suppliers posted $905 million in orders in July 2008 (three-month average basis) and a book-to-bill ratio of 0.83 according to SEMI. The preliminary June book-to-bill ratio of 0.85 was revised downward considerably to 0.81, indicating a small climb over a potential drop in the ratio.

"Orders for semiconductor equipment continue reflect the pronounced cutback in capital expenditures this year and are at the lowest levels since November of 2003,” said Daniel Tracy, senior director of Industry Research and Statistics at SEMI.  "While chip-makers remain attentive to cost controls, this remains a highly cyclic industry. Factory utilization levels, unit demand growth and planned fab projects suggest that new investment activity will resume in 2009.”

The three-month average of worldwide bookings in July 2008 was $905 million. The bookings figure is three percent less than the final June 2008 level of $934 billion, and about 36 percent less than the $1.41 billion in orders posted in July 2007.

The three-month average of worldwide billings in July 2008 was $1.09 billion. The billings figure is about six percent less than the final June 2008 level of $1.16 billion, and about 36 percent less than the July 2007 billings level of $1.69 billion.

As the chart below highlights, the book-to-bill ratio has been falling for two years, after reaching a peak in June, 2006. In the second of two dips in the ratio since 2006, the weakest period continues to be the current year, due to several rounds of capital spending cuts at memory manufacturers and continued conservative spending at the major foundries during a period of high-utilization rates.