worldwide highlights
04/01/1998
Worldwide highlights
Monthly chip sales decline in December.
Worldwide semiconductor sales took a hit in December, dropping 5.2% on a month-to-month basis to $11.48 billion, from $12.11 billion in November, with all of the world`s regional markets showing declines (see table). The figures come from the Semiconductor Industry Association World Semiconductor Trade Statistics monthly Global Sales Report. The month-to-month decline is the first significant drop in the sales indicator since February 1997. Sales since then have been either flat or increasing month-to-month. Currency fluctuations and economic turmoil in Asia are contributing factors, along with soft DRAM prices and the year-end holidays.
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CMP and LCD markets up in 1997.
The worldwide market for chemical mechanical polishing (CMP) modules for semiconductor planarization reached $357.1 million in 1997, up 56.1% over 1996, according to The Information Network, Williamsburg, VA. Company president Robert Castellano predicts that the market will grow to $555.6 million in 2000. In 1997, 785 modules were shipped and 863 modules booked, bringing the installed base to 2007 modules. IPEC held a 60.7% share of the 1997 market, followed by SpeedFam and Applied Materials, based on number of tools shipped.
The LCD processing equipment market rose 20.6% in 1997 to $837.6 million, after rising 6.2% in 1996 and falling 7.0% in 1995, noted Castellano. The 1997 increase came from increases in the average selling price of equipment and sales equipment capable of handling third-generation substrates (550 ? 650 mm). Tokyo Electron, Dainippon Screen, and AKT (a joint venture of Applied Materials and Komatsu Technology) dominated the LCD equipment market in 1997. The market for both active and passive LCDs is expected to grow at a CAGR of 23.2% between 1995 and 2000, from $5.18 billion to $14.7 billion, respectively.
Display prices expected to decline in 1998.
Price declines of 50% or more for new types of desktop computer monitors may occur in the near future, noted industry analysts at the Display Works 98 exposition. This decline may see new flat panel displays for desktop computers sold for 1.5-2 times the price of current cathode ray tube monitors. Ross Young, president of industry analysis firm Display Search, attributed the steep price drop to the excess manufacturing capacity for LCDs and the de-valued Asian currencies. Most analysts agree that spending will be brisk in 1999 and beyond, when markets beyond portable and desktop computing will be emerging for new types of computer displays.
Equipment book-to-bill needs revision.
SEMI reported a book-to-bill ratio of 0.94 for North American semiconductor equipment sales during January, however, all of SEMI`s monthly reports for calendar 1997 were affected by double-counting of certain etch and CVD orders and will have to be re-stated. SEMI is now estimating that the world equipment market increased about 7% during 1997, rather than the 11% that was reported. The magnitude of the erroneous counting is reflected in the revised figures released for December 1997. In late January, SEMI reported that North American equipment companies had three-month average bookings of $1.750 billion and shipments of $1.809 billion. In its latest report, the group says December bookings were $1.536 billion and shipments were $1.531 billion, a difference of $214 million (13%) on bookings and $279 million (15%) on shipments (see table). World equipment sales are now seen in the $28.4 billion neighborhood, rather than the previously estimated level of over $29 billion