Semiconductor industry and market
Which correctly describes the book-to-bill (BB) ratio, used as an indicator of the semiconductor equipment market?
- AOrders divided by shipments (billings); above 1 means orders exceed shipments, indicating strong demand
- BThe proportion of good chips per wafer
- CThe average interval between equipment failures
Show answer and explanation
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.