Taipei, July 23, 2010 (CENS)--Based on a three-month average, North American manufacturers of semiconductor equipment scored US$1.68 billion in orders and a book-to-bill (B/B) ratio of 1.19 in June alone, according to trade organization SEMI, which represents most of the world`s manufacturers of semiconductor and liquid crystal display products.

A B/B ratio of 1.19 means that US$119 worth of orders were received for every US$100 of product billed for the month, SEMI elaborates. Over the past 12 consecutive months, the ratios have stayed above 1.0, indicating the consistent customer demand that SEMI members are working hard to meet, according to Stanley T. Meyers, SEMI`s president and chief executive officer.

He pointed out that the capital spending plans that silicon fabs had put in place resulted in orders at the highest level since August 2006. Also, the three-year high reflects upbeat view of the market future among industry insiders.

Taiwan`s industry watchers estimated the ratio for the third quarter likely to hit an eight-year peak of 1.23 in consideration that heavyweight chipmakers including Taiwan Semiconductor Manufacturing Co. and Intel Corp. have announced more capital spending for this year than previously projected in light of robust demands for advanced process technologies.

SEMI noted that demands for 40- and 45-nanometer tools at major chipmakers have surged considerably, with Intel applying advanced processes to chips used in iPads and iPhones.

TSMC, currently the world`s No.1 pure silicon foundry, recently decided to spend more capital than US$4.8 billion it previously projected on capacity expansions. Chip-making equipment suppliers estimated the TSMC to eventually put US$5.5-5.8 billion into capacity expansions by the end of this year.

Industry executives estimated TSMC`s wafer shipments and its sales to gain at least 5% and 10% in the third quarter relative to the second quarter.

The June bookings figure of US$1.68 billion represented a 10.5% increase from May 2010 level of US$1.53 billion and a 379% spike from the US$351.7 million posted the same month last year.

The June 2010 billings was US$1.42 billion, up 5.7% from May 2010 level of US$1.34 billion and 222.7% from June 2009 level of US$440.5 million.

(by Ken Liu)