SEMI Equipment Order Downturn Unlikely a One-Month Wonder
According to trade group Semiconductor Equipment and Materials International (SEMI):
“Bookings and billings remain at levels above a year ago, and there is relative equilibrium in the book-to-bill ratio, which has remained very near parity for half of a year,” said Stanley T. Myers, president and CEO of SEMI. “We are surveying member companies and will issue a new consensus forecast outlook for capital equipment next month during SEMICON West.”
If the industry group is to be believed, the one-month semiconductor equipment sales decline in April will mark the shortest semi equipment contraction in history. Which is a big part of the reason why I don’t believe it.
The other part is that I’m hearing about more and more order pushouts of exactly the type I have been predicting here for over a year.
Don’t get me wrong - I think this is exactly what their customers need to be doing, which is why I have taken neutral to bullish outlook toward the semiconductor stocks.
Disclosure: William Trent has a long position in SMH.
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[…] technically 1% is “single digits,” or digit anyway. But as I said at the time, and again last month, if the industry group is to be believed the current decline will mark the shortest semi equipment […]