SEMI: NA chip demand holding steady into 2006

February 24, 2006 – Demand for semiconductor equipment from North American-based manufacturers still hovers below the parity mark, balancing incoming orders with outgoing sales, according to SEMI.

Worldwide bookings (a three-month average) in January totaled $1.26 billion, a 10.0% increase from December and 27.4% higher than levels in January 2005. Billings (also a three-month average) totaled $1.29 billion, up 5.5% month-on-month and 2.6% year-on-year. Bookings reached their highest level since November 2004; billings were the highest in 11 months.

The book-to-bill ratio (B:B) crept closer to but still just below the parity mark at 0.97 — meaning $97 worth of orders was received for every $100 of product billed for the month. The B:B hasn’t broken 1.0 since August 2004, but it has managed to stay above 0.90 for eight straight months.

“These year-end numbers reinforce the optimism in the capital equipment industry, and indicate continued momentum and steady growth for the year ahead,” stated Stanley Myers, SEMI president and CEO.


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