News & Analysis
Tell us What You Think
We want to know what you thought about this News. Let us know by adding a comment.
Semiconductor equipment sales continue to slow
Brian Fuller
11/16/2012 2:15 PM EST
SAN FRANCISCO —The semiconductor equipment industry's sales
and orders continued to slow quickly in October in a "muted"
capital expenditure environment, an industry organization
reported.
The equipment industry trade group SEMI reported three-month average of worldwide billings in October 2012 was $986.5 million. The billings figure is 15.3 percent lower than the revised September 2012 level of $1.16 billion, and is 21.6 percent less than the September 2011 billings level of $1.26 billion.
The three-month average of worldwide bookings in October 2012 was $743.2 million. The bookings figure is 18.6 percent lower than the revised September 2012 level of $912.8 million, and is 19.8 percent lower than the October 2011 order level of $926.8 million.
The group's widely cited book-to-bill ratio also fell to its lowest level in 2012 to 0.75 from 0.78 in September and 0.82 in August. October's number means 75 cents in new orders were booked for every dollar in product revenue.
High to low
The best book-to-bill month in 2012 was March 1.12.
"Semiconductor industry investments remain muted as the industry enters the fourth quarter," said Denny McGuirk, president and CEO of SEMI. "Investments in leading-edge technologies will continue to drive spending in the near-term, while a clearer 2013 outlook will emerge over the next couple of months as capex plans are announced."
While the B:B numbers are falling and Septembers bookings numbers was revised down slightly, there's cause for some optimism. The B:B ratio in 2011 followed a similar pattern to 2012, dipping to its lowest level in September and October before beginning a rebound in November on its way to that March 2012 high.
In addition, much of the capital expenditure cutbacks and expectations were telegraphed early this year by semiconductor companies. TSMC said in September it will boost capital spending 10 percent in 2013 to $10 billion.
The equipment industry trade group SEMI reported three-month average of worldwide billings in October 2012 was $986.5 million. The billings figure is 15.3 percent lower than the revised September 2012 level of $1.16 billion, and is 21.6 percent less than the September 2011 billings level of $1.26 billion.
The three-month average of worldwide bookings in October 2012 was $743.2 million. The bookings figure is 18.6 percent lower than the revised September 2012 level of $912.8 million, and is 19.8 percent lower than the October 2011 order level of $926.8 million.
The group's widely cited book-to-bill ratio also fell to its lowest level in 2012 to 0.75 from 0.78 in September and 0.82 in August. October's number means 75 cents in new orders were booked for every dollar in product revenue.
High to low
The best book-to-bill month in 2012 was March 1.12.
"Semiconductor industry investments remain muted as the industry enters the fourth quarter," said Denny McGuirk, president and CEO of SEMI. "Investments in leading-edge technologies will continue to drive spending in the near-term, while a clearer 2013 outlook will emerge over the next couple of months as capex plans are announced."
While the B:B numbers are falling and Septembers bookings numbers was revised down slightly, there's cause for some optimism. The B:B ratio in 2011 followed a similar pattern to 2012, dipping to its lowest level in September and October before beginning a rebound in November on its way to that March 2012 high.
In addition, much of the capital expenditure cutbacks and expectations were telegraphed early this year by semiconductor companies. TSMC said in September it will boost capital spending 10 percent in 2013 to $10 billion.
|
Billings
(3-mo. avg) |
Bookings
(3-mo. avg) |
Book-to-Bill
|
|
|
May 2012
|
1,539.3
|
1,613.7
|
1.05
|
|
June 2012
|
1,535.7
|
1,424.3
|
0.93
|
|
July 2012
|
1,442.8
|
1,234.6
|
0.86
|
|
August 2012 (final)
|
1,331.5
|
1,092.9
|
0.82
|
|
September 2012
(revised)
|
1,164.4 |
912.8
|
0.78
|
|
October 2012 (prelim)
|
986.5
|
743.2
|
0.75
|
Source:
SEMI,November 2012;
David Powell Inc.
Related stories :
--TSMC to expand 2013 capex to $10 billion
--Analyst: Only six chip firms to expand capex in 2012
--Global chip capex expected to drop 6% in 2012
Related stories :
--TSMC to expand 2013 capex to $10 billion
--Analyst: Only six chip firms to expand capex in 2012
--Global chip capex expected to drop 6% in 2012
|
|
|
|
|
Navigate to related information