According to the October BB-ratio report released by SEMI, the international semiconductor equipment and materials association, the net order value (three-month average) of North American semiconductor equipment companies in October 2016 was $1.49 billion, and the BB-ratio was 0.91.

The BB ratio is calculated by dividing the order value by the shipment value, and a BB ratio of 0.91 means that for every 100 dollars in shipments, the order value is $91.

▲Screenshot from the SEMICON Korea introduction video.

The order value of $1.49 billion in October fell 5.1% compared to the $1.57 billion in September and rose 12.2% compared to the $1.33 billion in October of the previous year. Semiconductor equipment shipments in October amounted to $1.63 billion, a 9% increase compared to the $1.49 billion in September and a 19.8% increase compared to the $1.36 billion in October of last year.

In October, orders for electrical equipment amounted to $1.32 billion, a decrease from the previous month's $1.4 billion but an 8% increase compared to October of the previous year. Shipments in October totaled $1.46 billion, resulting in a book-to-bill ratio of 0.91 for electrical equipment. Shipments in September were $1.3 billion, and in October of the previous year, they were $1.22 billion.

▲ Semiconductor equipment shipments and orders.

Back-end equipment orders in October amounted to $170 million, a slight increase from the $160 million reported last September. Shipments in October totaled $170 million, resulting in a book-to-bill ratio of 0.98 for back-end equipment. For reference, the shipment value of back-end process equipment last September was $190 million, and the shipment value and order value in October of the previous year were $140 million and $100 million, respectively.

SEMI President Denny McGuirk stated, “Total semiconductor equipment shipments in October increased by 9% compared to last September, but orders decreased by 5%,” adding, “While orders and shipments are on a relative upward trend compared to last year, the BB ratio in October failed to reach the benchmark for the first time this year.”