Record Orders for Semiconductor Equipment

Semiconductor equipment makers based in North America posted record orders of $3 billion in October, 17% higher than shipments in the same period, according to trade group Semiconductor Equipment and Materials International. The so-called book-to-bill was 1.17, meaning that for every $1.17 in orders taken, $1.00 in chip-making equipment was shipped. The three-month average of $3.04 billion is 5% higher than the September 2000 level. While the figures indicate an expanding market, many analysts have recently downgraded the semiconductor industry, noting that while still growing, demand for chips is not increasing as widely as many had forecast. Factors include a still-sluggish holiday season for sales of personal computers and slowing sales of cellular handsets.