SAN JOSE -- Orders for chip production systems grew 5% in July from the previous month at North American-based suppliers, but shipments fell 12% from June, reported the Semiconductor Equipment and Materials International (SEMI) trade group today.
The drop in tool shipments and slight rise in orders pushed SEMI's book-to-bill to a reading of 0.67 from 0.56 in June. The July book-to-bill reading was the third consecutive increase in the index since the ratio hit its lowest point ever in April at 0.44. A book-to-bill of 0.67 means $67 worth of new orders were received by suppliers for $100 of products shipped.
"The bookings figures provide some indication that capital equipment orders may have reached bottom, thought capital equipment manufacturers remain cautious given the existing uncertainties for the world's economics and for the semiconductor industry looking ahead," said Elizabeth Schumann, director of industry research and statistics for SEMI.
SEMI said North American-based chip equipment suppliers received $764.2 million in orders during July compared to $727.5 million in June, based on a three-month moving average. Bookings were 74% lower than $2.9 billion in July 2000, according to SEMI's Express Report.
North American-based suppliers shipped $1.14 billion in equipment worldwide in July, which is a drop of 12% from $1.29 billion in June, based on SEMI's three-month average. Equipment billings were 52% lower than $2.4 billion in July 2000, said the trade group.
Last month, SEMI released its mid-year consensus forecast, which showed a 35% drop in semiconductor equipment sales to $31 billion in 2001 from $47.7 billion last year (see story). Some market analysts are predicting a greater drop in tool sales this year as the chip industry struggles with what many believe is the worst semiconductor recession in history.