Semiconductor is a very cyclical industry. This is one of the important indicators to watch as it is a general reflection of the world economy(ipod, TV, computer, handphone etc). Book-to-bill ratio is a number that can tell us whether booking is stronger than products shipped, ratio more than 1 is telling us shipment is lagging behind booking.
Something really caught my attention, book-to-bill greater than 1 since July '09 and Aug '09, first time above 1 since 2005. Wow! almost 4 years ago which seems like an eternity to many.
While worldwide semiconductor sales are still in the contraction mode but recovering rapidly, signalling better days ahead. So is worldwide economy.
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