Semiconductor Equipment and Materials International (SEMI) reported a preliminary book-to-bill ratio of 1.42 for April. That means U.S. companies received US$142 in orders for each US$100 worth of semiconductor products shipped.
"Strong chip demand worldwide and new (fabrication) activity, especially in the Asia Pacific region, are fueling a sustained expansion of the semiconductor equipment sector," said Stanley Myers, president of SEMI, in a statement.
The April results mark a slight retreat from previous months: The book-to-bill ratio was 1.44 in February and 1.45 in March. Nevertheless, the April ratio reflects strong demand compared with a year ago, when the industry was just entering a cyclical upturn.
The three-month average of orders received in April 2000 was US$2.7 billion, 94 percent above the US$1.4 billion posted the year before. The three-month average of worldwide shipments in April 2000 was US$1.9 billion, 76 percent above the shipments level of US$1.1 billion in April 1999.
"This confirms a trend," said semiconductor analyst David Wu of ABN Amro. "Business is booming, and we knew that."
The Philadelphia semiconductor index fell 72.92, or almost 8 percent, to 869.74 yesterday, led by Rambus, which closed down US$20.25, or 12 percent, to US$150.63.
Shares in other chip companies also dropped. KLA-Tencor fell US$5.56 to US$46.50, and Intel dropped US$8.50 to US$109.88. Teradyne dipped US$9.13 to US$75.38, and Applied Materials declined US$7.44 to US$71.88.
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