November 22, 2006 – Global orders for semiconductor manufacturing equipment slipped in 3Q06 but sales chugged right along, and both are enjoying growth well above a year ago, according to data compiled by SEMI and SEAJ.

Worldwide semiconductor manufacturing equipment sales reached a five-year high at $10.97 billion in 3Q06, a 14% increase from 2Q and about 38% higher than 3Q05. Orders rose to $11.62 billion, a 5% decrease from the previous quarter but 51% above the same period a year ago.

By region, most impressive growth in demand was in Korea, which nearly doubled its year-on-year billings to $1.85 billion, surpassing Taiwan and North America to become the second-largest purchaser of chipmaking tools. Taiwan rose only 5% sequentially, while NA chip tool sales shrunk 4% vs. the prior quarter. China also displayed impressive Y-Y growth to account for about $845 million in chip sales. Europe, meanwhile, saw a 10% decline in chip sales in 3Q.

Compared with a year ago, every region except Japan saw double-digit growth, led by Korea and China, followed by Taiwan and ROW (42%-43%), North America and Europe (26% and 23% respectively).

Japan held its lead as the top purchaser of chipmaking tools, topping $2.267 billion, as only three regions (Japan, Korea, and China) achieved double-digit sequential growth in chip sales during 3Q06.

Quarterly global semiconductor manufacturing equipment billings (US $M)

Region………………3Q06……………vs..2Q06…………..vs..3Q05

Japan………………..2667………….1924 (39%)………2477 (8%)
Korea………………..1947………….1518 (28%)………..992 (96%)
Taiwan………………1857………….1763 (5%)………..1296 (43%)
North America……1770………….1836 (-4%)………1402 (26%)
ROW…………………1022…………..1007 (1%)………….720 (42%)
Europe………………..860…………..954 (-10%)…………698 (23%)
China………………….845…………..593 (42%)………….390 (117%)
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TOTAL……………10,967………….9594 (14%)………..7976 (38%)

Source: SEMI/SEAJ