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SEMI book-to-bill ratio of 0.84 lowest in years |
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Aug 17, 2007 at 11:36 AM |
 The North American-based semiconductor equipment suppliers saw their book-to-bill ratio plummet in July 2007 to 0.84, the lowest recorded ratio in over two years. Equipment suppliers posted $1.44 billion in orders in July.
The three-month average of worldwide bookings in July 2007 was $1.44 billion, according to SEMI, which was a 10 percent decline from the final June 2007 level of $1.61 billion and 17 percent less than the $1.73 billion in orders posted in July 2006, noted SEMI.
"The declining book-to-bill ratio is based on lower order levels for new semiconductor manufacturing equipment," said Stanley T. Myers, President and CEO of SEMI. "Orders have slowed from the strong levels observed in the first part of this year and are at levels last seen in November of 2006."
The declining book-to-bill ratio mat yet have bottomed out as the majority of major equipment suppliers have recently reported that next quarter revenue guidance would be at best flat, down by between 5 and 15 percent.
The most commonly cited reason for the decline in sales has been the capital spending by memory manufacturers being first-half-year weighted, while foundry spending which was second-half-year loaded has yet to come through, as manufacturers wait to see fab utilization rates increase before adding new capacity.
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Fab management 
