SAN JOSE--The surge in semiconductor capital spending has been strong enough this summer to keep production-tool investments climbing in July, according to a new book-to-bill report based on input from North American-based suppliers. Record orders and tool shipments placed the book-to-bill index at 1.23 in July, said the Semiconductor Equipment and Materials International (SEMI) trade group here.
SEMI said July was a better month for equipment suppliers than usual. Worldwide bookings by North American-based suppliers grew 2.5% to $2.930 billion in July from a revised figure of $2.859 in June, based on a three-month moving average. Tool shipments grew 5.2% to $2.376 billion in July from $2.259 in June. A book-to-bill ratio of 1.23 means suppliers were receiving $123 in new tools orders for every $100 in equipment shipments.
"A review of the historical data shows that in six of the last nine years, the industry has typically seen bookings drop in July," noted Elizabeth Schumann, director of industry research and statistics for SEMI. "The momentum of the current cycle, however, has been strong enough to keep orders edging upward.
"The fundamentals of the semiconductor industry remain strong, with continued demand for chips driving the move to add capacity and adopt new manufacturing technologies," she added.
While the value of bookings did rise in July, the growth rate in new tool orders declined slightly last month. SEMI reported a preliminary percentage growth of 2.5% in bookings last month vs. a revised 2.9% increase in June. The book-to-bill ratio eased from June's 1.26 reading (see July 21 story).
But semiconductor equipment suppliers still have plenty to celebrate. July's bookings were 91% higher than $1.5 billion in the same month last year, and 79% higher than the previous cycle peak in November 1997, when orders reached $1.6 billion, said SEMI.
The global trade group also said the three-month average of worldwide shipments in July 73% above July 1999 billings of $1.4 billion, abd 45% higher than $1.6 billion in the last cycle's peak in November 1997.
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