SIA reports book-to-bill dips to 0.97 in October

Electronic News, Nov 14, 1994

San Jose, Calif. - The Semiconductor Industry Association (SIA last week said that after 10 consecutive positive months, the North America market book-to-bill ratio dipped in October, according to data collected by World Semiconductor Trade Statistics (WSTS).

The SIA said the preliminary October book-to-bill ratio of 0.97 breaks a 10-month positive streak that stretched back to November 1993 in the monthly tabulation of the North America semiconductor market. October's result marks the seventh time in the last 10 years the book-to-bill ratio has been under the 1.00 breakeven mark for the same fall month.

For the third time this year, semiconductor billings will break the $3 billion figure. The SIA said October 1994's billings based upon a three-month moving average were $3.01 billion, a 3.5 percent increase over September's $2.90 billion mark.

The non-adjusted or actual October billings mark was $2.77 billion, a 19.2 percent decline from September's $3.43 billion result, but was 37.5 percent higher than the 2.01 billion recorded in October 1993.

North American market bookings in October (orders based on a three-month average) were $2.91 billion - lower than the September figure of $2.97 billion. but 33.0 percent higher than the $2.19 billion recorded in October 1993.

The book-to-bill ratio for the past 13 months is as follows: * October 1993 - 1.00 * November 1993 - 4.99 * December 1993 - 1.04 * January 1994 - .10 * February 1994 - 1.13 * March 1994 - 1.13 * April 1994 - 1.15 * May 1994 - 1.13 * June 1994 - 1.08 * July 1994 - 1.06 * August 1994 - 1.05 * September 1994 - 1.02 (revised) * October 1994 - 0.97 (preliminary).

Despite the first ratio decline of 1994, WSTS is forecasting a 14.4 percent increase in 1995 for the world's largest North America market to a projected $37.8 billion while 1994 North America sales are expected to reach $33.0 billion, a 33.7 percent increase from 1993. Correction: A story in the Oct. 31 issue mistakenly reported that the Semiconductor Industry Association (SIA) predicts growth of 33 percent in the North American semiconductor market through 1997. Also, the SIA projected at its October 1992 meeting that growth for 1993 would be $20 billion, not $20 million, and its recent projected growth rate for Japan this year is 11.9 percent, not 9.3 percent.