IC book-to-bill slides to 0.87, says VLSI Research
By Mark LaPedus
Semiconductor Business News
(11/20/02 06:08 p.m. EST)
SAN JOSE--More doom and gloom for the IC industry. The three-month rolling average of the book-to-bill ratio for semiconductors dropped to 0.87 for the month of October, down from 0.91 in September, according to new figures from VLSI Research Inc. here today.
The IC book-to-bill ratio is expected to remain at 0.87 in November, when bookings are forecasted at $9.67 billion and billings are at $11.09 billion, according to the San Jose-based market research firm.
October bookings were at $9.40 billion and billings were at $10.82 billion, according to VLSI Research. In comparison, September bookings were at $9.52 billion and billings were at $10.51 billion, according to the report.
Fab-capacity utilization has been sliding down from the peak of 87% in June. It was at 84% in October and is anticipated to drop further to 79% in November, according to the market research firm.
“In their pursuit of profitability, IC makers are cutting production to raise prices,” according to VLSI Research. “At the same time, they are adding capacity inexpensively through the following: 1) They are converting existing capacity to tighter CDs, but not production. Reported utilization rates include production of looser geometry parts on tighter capacity, and 2) They are relying on equipment discounts; there is a fair amount of order cancellations and then rebooking at lower prices,” according to VLSI Research.
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