Chip equipment makers see Aug. orders top $3 b.

SAN JOSE: Semiconductor equipment makers saw their average monthly orders top

$3 billion in August, marking the first time orders have reached that level in

one month, an industry group said on Thursday.

Semiconductor equipment shipments during August reached $2.4 billion, giving

the industry a book-to-bill ratio of 1.24, according to Semiconductor Equipment

and Materials International, an industry association.

A book-to-bill ratio of 1.24 essentially means that microchip equipment

makers received about 24 per cent more orders for products than were shipped

out, and it is an indicator of the general good health in the industry.

Overall, the worldwide orders figure was up 93 per cent from August 1999 when

bookings were about $1.6 billion, and shipments were up 69 per cent from the

same month a year ago when equipment makers shipped $1.4 billion worth of

product.

"While there are diverse opinions as to how long the current expansion

cycle will last, most industry analysts expect at least another 12-18 months of

orders growth," said the group’s director of industry research and

statistics Elizabeth Schumann.

She noted that the fact orders topped $3 billion during August is especially

significant because August is a traditionally weak month for the semiconductor

equipment industry.

(C) Reuters Limited 2000.