Semiconductor industry and market

Which correctly describes the book-to-bill (BB) ratio, used as an indicator of the semiconductor equipment market?

  1. AOrders divided by shipments (billings); above 1 means orders exceed shipments, indicating strong demand
  2. BThe proportion of good chips per wafer
  3. CThe average interval between equipment failures
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Answer: A. Orders divided by shipments (billings); above 1 means orders exceed shipments, indicating strong demand

The book-to-bill ratio is orders booked in a period divided by shipments billed. Above 1, more orders are coming in than are being shipped, signaling strong demand ahead; below 1, demand is weakening. Figures for North American equipment makers were once published monthly and watched as a leading market indicator.

  • A. Correct. Demand strength is gauged from the ratio of orders to shipments.
  • B. That is yield.
  • C. That is MTBF.
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More Semiconductor industry and market questions

  1. In semiconductor and other manufacturing, what is the tendency called for the cost per unit to fall by a fixed percentage each time cumulative production doubles?
  2. For leading-edge logic chips, which is closest to the typical time from starting a wafer on the production line to completing the front-end process?
  3. What is it called when an equipment maker arranges to procure an equivalent product from another supplier as well, in case supply of a particular chip stops?
  4. When a chipmaker announces the end of life (EOL) of a product, what is it called when equipment makers using it buy, one last time, the quantity they will need for future maintenance and production?
  5. Which is the main reason the price per processed wafer has risen sharply as leading-edge process generations advance?