SAN JOSE, CA - North American-based manufacturers of semiconductor equipment posted $1.23 billion in orders in February 2008 and a book-to-bill ratio of 0.93, according to a report published by Semiconductor Equipment and Manufacurers International (SEMI). The report shows a book-to-bill of 0.93, meaning that $93 worth of orders were received for every $100 of product billed for the month. A book-to-bill ratio of less than 1.0 indicates a decreasing trend in sales.

The bookings figure is about 8% greater than the January 2008 level of $1.14 billion, but 12% less than the $1.4 billion in orders posted in February 2007.

The three-month average of February 2008 worldwide billings was $1.32 billion. This figure is about 3% greater than the final January 2008 level of $1.28 billion, but about 8% less than the February 2007 billings level of $1.42 billion.

"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."

The SEMI book-to-bill is a ratio of three-month moving average of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.

As a part of the Economic Stimulus Act of 2008 that was signed into law on February 13 by President Bush, two provisions provide significant benefit to manufacturing companies.

The new law nearly doubles the amount of deductible Code Sec. 179 expensing for 2008 to $250,000, and increases the threshold for reducing the deduction to $800,000. It applies to property purchased and put into service in the tax year beginning in 2008. This would benefit small businesses that are purchasing equipment.

The Act also provides a temporary bonus depreciation aimed at encouraging business investment. Property must be eligible for the modified accelerated cost recovery system, with a depreciation of 20 years or less, and must be purchased and placed in service during 2008. The new law provides taxpayers a 50% first year bonus depreciation of the adjusted basis of the property.

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