January 23, 2006 – Demand for semiconductor equipment from North American-based manufacturers rose slightly in December from the previous month, and a solid increase in orders since the fall suggests growing strength in the market, according to SEMI.

Orders in December (a three-month rolling average) added up to $1.14 billion, up 4.6% from November and 8.1% below levels from a year ago, according to SEMI. Sales in December totaled $1.19 billion, up <1% sequentially and down 9.8% year-on-year. The book-to bill ratio was 0.96, meaning that $96 worth of orders were received for every $100 of product billed for the month.

For all of 2005, preliminary totals for billings were $14.20 billion, a 12.9% decline from 2004. Bookings were $12.48 billion, a 26.9% decline from the previous year. Demand has picked up noticeably since the fall, with a 16% jump in tool orders and a 9% increase in sales. SEMI president and CEO Stanley Myers pointed to the mini-upswing as a sign of “growing confidence in the industry and indicates a positive outlook for the year ahead.”

Billings (Three-month avg.) Bookings (Three-month avg.) Book-to-Bill

July 1078.2 1007.3 0.93
Aug. 1055.5 1022.3 0.97
Sept. 1088.2 984.1 0.90
Oct. 1145.9 1093.9 0.95
Nov.* 1179.7 1093.2 0.93
Dec.** 1186.5 1144.0 0.96

*final
**preliminary

Source: SEMI