The chip market’s fortunes have suffered in the global recession.
In December, business was so slow sales slumped 22 percent. The industry was clearly shrinking.
July orders to shipment ratio highest in a year, VLSI Research says
This week, two reports have confirmed a solid recovery is underway. They suggest companies are once again growing, with orders exceeding shipments for the first time since the downturn began.
According to research released Friday from VLSI Research, the industry began showing signs of a strong recovery in July. The book-to-bill ratio for the month of 1.29 (meaning $129 of orders come in for every $100 of product shipped) was the highest since July 2008.
Integrated circuit orders advanced 8.1% and were almost double the level of February, VLSI said.
A separate report from SEMI, a trade association for makers of semiconductor manufacturing equipment, also found an expansion under way.
Manufacturers in North America posted a July book to bill of 1.06. It is the first time the industry has seen orders exceed shipments since January 2007. (Orders are still well below last year’s level, however.)
Obviously several more months of improving conditions will be necessary before real confidence returns. But the industry looks to have taken an important step toward recovery.
