The Channel logo

News

By | Tony Smith 21st January 2005 11:09

Chip makers' book-to-bill ratio slips

Falling demand

Chip makers saw the ratio of new orders to shipped product fall last month, suggesting the semiconductor industry hasn't yet moved out of its current dip.

According to the Semiconductor Equipment and Materials International (SEMI) trade organisation, December 2004 yielded a book-to-bill ratio of 0.95, down from 0.99 the month before. SEMI's monthly figure is calculated from a three-month rolling average.

Essentially, chip makers won $95 worth of orders for every $100 of product billed during the month. A figure of less than one indicates falling demand - there are fewer orders for new product in a given month than orders shipped and invoiced.

According to SEMI, $1.24bn of orders were placed in December, down from $1.33bn in November but 4.6 per cent up on December 2003's total, $1.18bn. Last month, some $1.31bn worth of invoices were put in the mail, down from $1.34 in November, but rather more than the $963m reported for December 2003.

The figures do not bode well for the chip industry's 2005. Many observers now believe this year will see sales static over last year's total at best but more likely down. ®

Related stories

AMD profits disappear in a Flash
Intel's record Q4 run ends with profit drop
Global chip sales edged up in November 04
Analyst slashes 2005 chip capex forecast - again
Q3 chip stockpile bigger than thought - researcher
iSuppli cuts 2005 chip sales growth target
World chip sales to fall next year - analyst

alert Send corrections

Opinion

Windows 10 on Surface 3

Tim Anderson

It's do-or-die for Microsoft's new operating system on 29 July
Wine Taps by N Wong, Flickr, CC 2.0 License

Simon Sharwood

Clouds sell compute by the glass. On-premises kitmakers want to sell wine-as-a-service

Greg Knieriemen

Privacy, security, information sovereignty, what we all want, right?
Microsoft's Joe Belfiore, speaking at Build 2015

Andrew Orlowski

Redmond devotees may as well have demanded manga desktop wallpaper

Features

Android icon desktop toys
Nice devices, now speak 'enterprise' to me
Standard Form 86 reads like a biography of each intelligence worker
Protestor barricade image via Shutterstock
Breaking through the hardware barricades to a new network state
Racecar