Chip tool billings at lowest level in more than five years, says SEMI

Chip tool billings at lowest level in more than five years, says SEMI
SAN JOSE -- Billings for chip-production systems from North American-based suppliers fell to their lowest levels in since the late 1990s at $784 million in January, which was 66% lower than the same month last year, said a new report released today by the Semiconductor Equipment and Materials International (SEMI) trade group.

Equipment billings at North American-based suppliers dropped 4.3% from December's $819.3 million, based on a three-month moving average, said SEMI. However, orders for tools grew slightly in January to $636.9 million, a 1.3% sequential increase from $628.5 million in December and the highest level in three months, said the San Jose-based trade organization.

The net result was a slight increase in SEMI's Express Report book-to-bill ratio to 0.81 from December's reading of 0.77 for North American-based equipment suppliers. A ratio of 0.81 means $81 worth of new orders were received for every $100 of products shipped.

"Frontend wafer-processing equipment bookings are at a low point for this downturn," said Stanley Myers, president and CEO of SEMI. "The improvement in overall equipment bookings, was driven by a 50% increase in the final manufacturing equipment bookings," he said, referring to chip-assembly and packaging tools. "January marks the second consecutive month in which bookings for the final manufacturing equipment segment increased significantly from its previously weakened state."

North American-based chip equipment suppliers reported worldwide bookings for systems were 66% below $1.85 billion in January 2001, based on a three-month moving average for orders, SEMI said. The three-month average of worldwide billings in January was $784.0 million was also 66% below shipments in January 2001, which had a value of $2.31 billion, according to SEMI.