September 20, 2007 – After sliding to an eight-month low in July, semiconductor equipment orders slid even further in August to their lowest levels in a year and a half, and the B:B demand indicator is even more sluggish, according to data from SEMI.

North American-based manufacturers of semiconductor equipment reported $1.39 billion worth of orders in August, about 1% lower than July, and down about 19% from August 2006 — the biggest single-month Y-Y decline, and first string of Y-Y declines, since late 2005 (Sept-Oct-Nov). Billings were flat with the prior month at $1.69B, and down roughly 3% from a year ago.

The book-to-bill ratio (B:B) stayed even with July at 0.83, meaning $83 worth of orders were received for every $100 of product billed. That’s the lowest it’s been since April 2005, and that’s also the last time bookings have been this low for consecutive months.

In a statement, SEMI president Stanley Myers acknowledged the continued slide in bookings, which are down 15% below a peak in May, but indicated that full-year 2007 equipment sales “remain on course to be comparable to 2006” — i.e., we’re in for zero growth in tool sales this year.

North American equipment bookings, billings — August 2006-August 2007

Month…….Billings…….%M-M………%Y-Y……….Bookings……..%M-M……..% Y-Y………B:B…………
……………..(3-mo. avg.)………………………………….(3-mo.avg.)……………………………………..

Aug’06…………..1742.8…….6.4%……..65.1%……….1729.7…….-0.3%…….69.6%……..0.99
Sep’06…………..1672.8……-4.0%……..53.7%……….1639.2…….-5.2%…….66.6%……..0.98
Oct’06…………..1562.9……-6.6%……..36.4%……….1468.6……-10.4%…….34.3%……..0.94
Nov’06…………..1486.1……-4.9%……..26.0%……….1426.5…….-2.8%…….30.5%……..0.96
Dec’06…………..1482.3……-0.2%……..21.1%……….1497.2……..5.0%…….31.0%……..1.01
Jan’07…………..1448.0……-2.3%……..15.0%……….1445.8…….-3.4%…….17.9%……..1.00
Feb’07………….1423.0……-1.3%……..11.3%……….1398.1…….-3.1%……..8.3%……..0.98
Mar’07………….1436.4……..0.9%……….7.3%………..1419.6………1.5%………2.5%……..0.99
Apr’07………….1594.7……..11.0%……….10.1%………..1567.5………10.4%………-2.1%……..0.98
May’07………….1670.2……..4.7%……….15.0%………..1641.9………4.7%………1.4%……..0.98
June’07……….1768.1……..5.9%……….13.5%………..1607.6……..-2.1%………-9.8%……..0.91
July’07(f)………1685.8……-4.7%…….2.9%……….1406.3…….-12.5%……-18.9%……..0.83
Aug’07(p)…………..1687.6…….0.1%……..-3.2%……….1394.5…….-0.8%……-19.4%……..0.83

Source: SEMI