Global orders for Japanese semiconductor manufacturing equipment plunged 52.1% in October from a year earlier to Y60.91 billion — declining for the third straight month, according to preliminary data released by an industry association Wednesday.

The book-to-bill ratio for Japanese chip-making equipment manufacturers came to 0.81 in the month, below the key 1.00-mark, according to the Semiconductor Equipment Association of Japan, or SEAJ. That was worse than the 0.95 ratio registered in September.

The book-to-bill ratio measures the amount of new orders versus the amount of actual products shipped. A ratio higher than 1.00 means new orders outpaced shipments, implying a good business outlook.

Orders for Japanese chip manufacturing equipment are decreasing on weak demand for digital goods that use a large number of chips, such as mobile phones and flat-screen televisions.

Major Japanese makers of chip production equipment include Tokyo Electron Ltd. (8035.TO), Nikon Corp. (7731.TO) and Canon Inc. (7751.TO).

SEAJ plans to release preliminary orders data for November on Dec. 17.

Source: http://www.djnewswires.com/eu

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