Shipments of Computer Chips Rise 7.1%--1st Gain Since June

Computer chip manufacturers received new orders in November worth 95% of the total value of orders completed, an improvement from the 92% figure in October, the Semiconductor Industry Assn. said Monday.

The group said its book-to-bill ratio, a closely watched measurement of the health of the computer chip industry, rose to 0.95 in November, meaning there were 95 cents worth of new orders for each dollar worth of goods shipped, up from 0.92 in October.

Bookings or orders for the three-month period ending in November were $1.07 billion, a 6% increase above October. The order rate was 7.2% higher than the average bookings posted a year ago.

Billings, shipments of chips to U.S. customers, were worth $1.09 billion, a 7.1% increase from October and 23.8% increase over the same period last year.

“The November 7% increase in bookings is the first increase since June,” said Douglas Andrey, the association’s manager of industry statistical programs.

“We expect the book-to-bill ratio to continue on an upward trend,” the group said.

Analysts expect the October figures to be revised to about 0.95. The November figure matched or exceeded most analysts expectations.

“The numbers were better than generally anticipated,” said analyst Michael Gumport of Drexel Burnham Lambert Inc. “The orders were slightly disappointing since they were just up a notch and shipments were better than I expected.”

He said the rise in the ratio is not a clear path up but should take some pressure off the chip company stocks, which have been depressed because of a lack of convincing good news for the industry.

Gumport said he is cautious about what December will bring. “Orders will probably be down unless there is a significant revision,” he said.