News Article
Semiconductor equipment bookings collapse in 1Q05 says SEMI
Worldwide semiconductor manufacturing equipment billings reached US$9.35 billion in the first quarter of 2005, according to trade body SEMI. This is a rise of 2.3% on the same period a year ago and 6.5% above the fourth quarter of 2004.
Worldwide semiconductor manufacturing equipment billings reached US$9.35 billion in the first quarter of 2005, according to trade body SEMI. This is a rise of 2.3% on the same period a year ago and 6.5% above the fourth quarter of 2004.
But the picture for bookings was much bleaker. SEMI reported that global semiconductor equipment bookings fell 21% year-on-year and 12% sequentially to US$7.25 billion in the first quarter of 2005.
"The first quarter billings showed some positive momentum over the fourth quarter of last year, while worldwide bookings for semiconductor manufacturing equipment are down for the same period," said SEMI president and CEO Stanley T Myers.
The figures suggest that equipment suppliers could be in for a difficult first half of the year. It appears that chipmakers are delaying purchases of new equipment while they work off their excess inventories and wait for a clearer picture of the IC market in 2005 to emerge.
Although the first quarter booking levels appear disappointing, it should be noted that that is partly because they are being compared with 2004, when the equipment industry experienced record growth.
Moreover, with growing signs that the semiconductor industry will achieve reasonably strong growth in 2005, chip makers might decide to renew equipment purchases later in the year. A fall in equipment sales in 2005 is not therefore inevitable.
But the picture for bookings was much bleaker. SEMI reported that global semiconductor equipment bookings fell 21% year-on-year and 12% sequentially to US$7.25 billion in the first quarter of 2005.
"The first quarter billings showed some positive momentum over the fourth quarter of last year, while worldwide bookings for semiconductor manufacturing equipment are down for the same period," said SEMI president and CEO Stanley T Myers.
The figures suggest that equipment suppliers could be in for a difficult first half of the year. It appears that chipmakers are delaying purchases of new equipment while they work off their excess inventories and wait for a clearer picture of the IC market in 2005 to emerge.
Although the first quarter booking levels appear disappointing, it should be noted that that is partly because they are being compared with 2004, when the equipment industry experienced record growth.
Moreover, with growing signs that the semiconductor industry will achieve reasonably strong growth in 2005, chip makers might decide to renew equipment purchases later in the year. A fall in equipment sales in 2005 is not therefore inevitable.
