Wednesday, October 19, 2005

Trends in the Semiconductor Equipment Business

Trends in the Semiconductor Equipment Business What are these numbers? (click image for larger version) These numbers are the three month averages of billings and bookings for North American Based Capital Equipment Companies as reported in SEMI's Express Report. It's no wonder the Front End stocks have been acting so punk. The trend in the TAP sector looks pretty good but one has to admit that the TAP segment has been through a period of severe under-investment. A solid bounce was in the cards. The question is, will quarterly guidance for a 5 to 10 percent increase in Front End bookings send the stocks higher? In an environment where device makers pursue "incremental capacity additions" you have to wonder if there is a driver for substantially higher equity values. Incremental improvements? Maybe. I am not expecting anything spectacular. Charts for Chart Watch are under construction. I will post them this afternoon.

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