Orders for front-end process equipment rose 12.3% compared to the same period last year.

According to the July BB-to-Book ratio report released by SEMI (Semiconductor Equipment and Materials International), the net order value (three-month average) of North American semiconductor equipment manufacturers in July 2016 was $1.79 billion, and the BB-to-Book ratio was 1.05. The BB-to-Book ratio is calculated by dividing the order value by the shipment value; a BB-to-Book ratio of 1.00 means that for every $100 in shipments, there are $105 in orders.

Orders for front-end process equipment in July amounted to $1.59 billion, an increase from the previous month's $1.49 billion and a 12.3% rise compared to the same period in July 2015. Front-end process equipment shipments in July totaled $1.44 billion, resulting in a book-to-bill ratio of 1.10. Shipments in June were $1.47 billion, compared to $1.34 billion in July of the previous year. The front-end process equipment category includes wafer processing, mask/reticle manufacturing, wafer manufacturing, and fab facilities.


▲ Monthly semiconductor equipment shipments and orders ( Source: SEMI, August 2016)

Back-end equipment orders in July amounted to $210 million, a slight decrease from the $220 million reported last June. Shipments in July totaled $260 million, resulting in a back-end equipment book-to-bill ratio of 0.79. For reference, back-end equipment shipments in June were $250 million, while shipments and orders in July of the previous year were $210 million and $170 million, respectively. The back-end process equipment category includes assembly, packaging, and test equipment.

SEMI President Denny McGuirk stated, “Monthly shipments have exceeded $1.7 billion,” adding, “This is due to China’s recent purchase of 3D NAND manufacturing equipment, and this trend is expected to continue for the time being.”