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Orders for Japanese chip-making gear in July grew year-on-year for the 11th straight month, an industry group said on August 28, as chip makers continue investing to keep up with demand.
July orders rose 25.9 percent from a year earlier to 148.2 billion yen ($1.26 billion), the Semiconductor Equipment Association of Japan (SEAJ) said.
Although total orders fell from the six-year-high of 203.2 billion yen posted in June, the numbers continue to underline strong demand, an SEAJ spokesman said. "Orders for assembly and testing gear fell, but those for wafer processing - which is a good indicator of future demand in six to 12 months - rose year-on-year," he said. "I don't see signs of a pull-back yet." Domestic orders in Japan almost doubled to 97.9 billion yen, indicating that the strong gains in quarterly net profit posted by Japanese chip-gear makers such as Advantest Corp may continue when the orders translate into sales, he said. Japan, the world's largest market for chip-making tools, is home to such microchip equipment makers as Tokyo Electron Ltd, Disco Corp and Dainippon Screen Manufacturing Co Ltd, as well as Advantest.

Copyright Reuters, 2006

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