Semiconductor Sales Turn Higher, Industry Reports
The semiconductor industry reported further signs Monday that a recovery is under way as the ratio of new orders to outgoing shipments in October reached its highest level in more than a year.
Even so, the industry took in just $82 worth of orders for semiconductors last month for every $100 in shipments. The figure has ranged from $65 to $76 lately, but, in a healthy industry, the orders received would exceed the shipments to customers.
The Semiconductor Industry Assn., a trade group based in San Jose, reported improvements in all categories of integrated circuits. The orders are those placed by U.S. customers with semiconductor firms based in this country, Japan and Europe.
“It is still too early to forecast the rate of improvement in shipments,” said Thomas D. Hinkelman, president of the association. “There is evidence, however, that a U.S. market recovery has begun.”
At $506 million, average monthly orders for the three-month period ending in October were up 8% from the same figure for the three months ending in September. But orders are running 36% below the year-earlier level.
A decline in orders from computer customers and plummeting prices resulting from overcapacity have sent the cyclical semiconductor industry into its worst tailspin ever. Most forecasts call for an improvement in 1986.
