Semiconductor industry dynamics will get worse before getting better – 6/23/2008 – Electronic Business

Judging the health of an industry can be complex. For the semiconductor industry, one indicator is the amount of manufacturing equipment sold, which fell by 37% year-over-year in North America for the month of May. While some market research companies had been expecting sales to pick up in the second half of the year, there are macro-economic issues at play that suggest otherwise.

Industry association Semiconductor Equipment and Materials International (SEMI) reported last week that orders for semiconductor manufacturing equipment continued sliding downward, approaching levels seen in 2005 – the last time the semiconductor industry reported a year-over-year decline – as North America-based providers of semiconductor manufacturing equipment posting $1.03 billion in orders in May on a three-month average basis.