Order Activity Continues to Cool

Shereen Vaux

Order activity for semiconductor equipment slipped a degree to a cold 41°. All segments moved lower as end demand remains weak, resulting in a slower pace of inventory digestion. In the mobile market demand trends continue to point downwards. On a positive note, the Chinese handset builds are picking up modestly, though from a very low base. The PC market appears to have bottomed in Q1. Moreover, lead times appear to have ticked higher in the last few weeks due to some re-stocking in the PC supply chain. However, end-demand recovery remains suspect given the soft macro trends. Capacity utilization rates have plunged this year.