IC Manufacturing equipmet sales increased 8% in 2007 to $57.5 Billion ( Chart 1 )

	Chart 1

U.S. Dollar Continues to Weaken

The top10 IC manufacturing equipment suppliers had combined revenues of $33.5 billion in 2007, up 10% vs. 2006 per VLSI Research. Total 2007 IC manufacturing equipment sales rose about 8% to $57.5 billion. Included in these figures are sales of equipment used to make ICs, thin-film heads and MEMs and also service, support and refurbished systems.

( See Charts 2-10 for specific companies )

North American SEMI Feb. 2008 Book/Bill 0.93; Orders Down 12% vs. Feb. 2007 ( Chart 11 and Chart 12)

	Chart 11

	Chart 12

North American-based manufacturers of semiconductor equipment posted $1.23 billion in orders in February 2008 (3-month average basis) and a book-to-bill ratio of 0.93 according by SEMI. The 3-month average of worldwide bookings in February 2008 was $1.23 billion about 8% greater than January 2008, but 12% less than February 2007. The 3-month average of worldwide billings in February 2008 was $1.32 billion, about 3% greater than January 2008 level of $1.28 billion, but about 8% less than February 2007.

"The three month average for North American bookings and billings improved slightly in February, however they remain at levels below those reported last year," said Stanley T. Myers, president and CEO of SEMI. "Though current inventory and utilization rates are at healthy levels, device manufacturers are being conservative in their Capex spending."

	Chart 13

February orders for Japanese SEMI equipment dropped vs. January as weak DRAM prices cooled chip makers' planned CAPEX purchases.

Reuters reported that weak prices are also prompting alliances among chip makers, under pressure to squeeze smaller circuits onto more powerful chips.

Major Japanese SEMI equipment producers include Tokyo Electron, Advantest, Disco, Yokogawa Electric and Nikon.

Worldwide Semiconductor Assembly and Test Services (SATS) Grew 7.4% in 2007

The world market for semiconductor assembly and test services (SATS) grew for the sixth consecutive year in 2007, according to Gartner. Global revenue rose 7.4% to $20.6 billion.

"Integrated device manufacturers and OEMs continue to expand their adoption of the outsourcing business model," said Jim Walker, research VP for Gartner. "Their resources are now more focused on design and distribution and less on manufacturing. The result is increased demand for outsourcing. This demand, combined with the increasing transition to advanced packaging technologies, propels the SATS industry."

The top five vendors maintained their rankings in 2007, but their total revenue grew by 4.4% compared with 10.4% growth by the rest of the industry.

Advanced Semiconductor Engineering, of Taiwan, remained the leading provider of assembly and test services with revenue exceeding US$3 billion. Amkor Technology, of Arizona, stayed at no.2. Siliconware Precision Industries (SPIL), of Taiwan, was the no.3 vendor, as it increased its lead over Singapore's STATS ChipPAC. The highest growth among the top five was achieved by UTAC, of Singapore, with 18.5% growth taking its revenue to over US$750 million. This was due to growth in testing, memory and leadless-lead-frame packaging.

For 2008, Gartner forecasts another year of growth for the SATS industry with initial estimates for 9.8% over 2007.

Global SMT Equipment Market to Exceed US$5.6 Billion by 2010

Annual sales of SMT equipment in Asia-Pacific (excluding Japan) are projected to grow at a compounded annual rate of 13.3% over the years 2001 through 2010. SMT equipment sales in the United States totaled an estimated US$718 million in 2006, while sales in Latin America are projected to exceed US$146 million in 2009.

Key players include Agilent Technologies, FeinFocus USA., Glenbrook Technologies, Phoenix X-Ray Systems & Services, Teradyne and Universal Instruments. "Surface Mount Technology (SMT) Equipment: A Global Strategic Business Report" published by Global Industry Analysts, Inc. provides more details. See www.StrategyR.com

United States Loses #1 GDP Ranking Due to Weak Dollar/Strong Euro

The 15-country “Eurozone” passed the USA as the world’s largest gross domestic product producer. The 2007 U.S. GDP was $13.8 trillion and the Eurozone was 8.8 billion euros. With an exchange rate of $1.56 $/euro, the Eurozone’s 2007 GDP was equivalent to $13.9 trillion.