Chip makers' leading index slipped in July; decline had been expected, doesn't presage industry recession, analysts say

Article Abstract:

The Semiconductor Industry Association (SIA) reports the book-to-bill ratio for Jul 1989 was 0.95, meaning for every $100 of products billed, $95 in new orders came in. This index has fallen or remained unchanged every month since Feb 1989 when it reached 1.07. SIA and chip makers blame the drop on flat purchases by major companies and falling prices. The drop from 0.99 in Jun is also due to only four weeks in Jul as opposed to Jun's five, and to a traditional summer slowdown. Monthly orders for three months ending Jul 31 averaged $1.19 billion, down 5.9 percent from a year ago and down from $1.31 billion in the three-month period ending Jun 30 1989. Jul billings totaled $1.08 billion, down 25 percent from Jun and down 3.9 percent from Jul 1988.

Statistics (Data), Billing/Invoicing, Orders

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Chip delay at Motorola sparks ire

Article Abstract:

Computer makers are increasingly irritated at holdups in the production of Motorola's 68040 chip. HP, which had banked heavily on the 68040, has seen its share of the workstation market slip as a result of the production delays. Next Inc may delay its forthcoming workstation, while smaller vendors report pushing back release dates as much as a year. Some of these small firms may be forced out of business by the delay. Arch-competitors Sun Microsystems Inc and Intel Corp are grabbing bigger market shares as a result of the Motorola delay. The problem stems from the chip's extreme complexity: a single 68040 holds 1.2 million transistors. Motorola is still working to remove defects.

Production management, Product development, Microprocessor, CPUs (Central processing units), Supply and demand, Microprocessors, Hewlett-Packard Co., Motorola Inc., MOT, Industrial productivity, Productivity, Product Delay, Product introduction delays, Motorola 68040 (Microprocessor)

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Chip indicator fell last month to 4-year low

Article Abstract:

The semiconductor industry's leading indicator falls to the lowest point since 1985. The Semiconductor Industry Association (SIA) says the 'book-to-bill ratio' for Sep 1989 is 0.90 to 1, down from 0.94 in Aug. The Sep figure reflects inventory cutbacks, falling chip prices and sluggish electronics markets. Some companies, nevertheless, are doing well. Texas Instruments Inc (TI), for example, reports that even though markets are softening and prices for memory chips are falling, certain chips are in short supply. TI notes that the company's capital spending will exceed 1989's previous estimate ($800 million) by about 5 percent.

Marketing, Texas Instruments Inc., TXN, Market Analysis

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