The three-month average of new orders for semiconductor equipment from North American tool vendors increased 18.1 percent to $1.17 billion in September compared to September 2013 when new orders totaled $992 million, according to trade association SEMI. However, bookings declined 12.9 percent from August 2014 when equipment manufactures received $1.35 billion in new orders.
The association also said that equipment shipments increased 22.5 percent to $1.25 billion in September, compared to $1.02 billion in September 2013. September 2014 shipments declined 3.3 percent from August when sales were $1.29 billion.
The book-to-bill ratio for September declined to 0.94 from 1.04 in August, SEMI said. A ratio of 0.94 means that chip equipment manufacturers received $94 in new orders for every $100 of equipment that they shipped in the month.
The semiconductor book-to-bill ratio is the lowest it has been since December 2012 when it was 0.92. The ratio is a three-month moving average of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.
“Following 11 months of above parity book-to-bill ratios, the three-month average ratio declined in September,” said Denny McGuirk, president and CEO of SEMI. "While order activity moderated, equipment spending this year is expected to be robust and remain on pace for double-digit year-over-year growth.”
SEMI has forecast that the semiconductor equipment market will grow 20.8 percent in 2014 to $38.4 billion and will grow 10.8 percent in 2015 to $42.6 billion. One reason for the growth in equipment spending is new fab construction. About $6.7 billion in fab construction spending is forecast for 2014 and another $5 billion in 2015.Most spending will occur in Taiwan, Americas and Korea, according to SEMI.
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