Signs of chip change coming

ORDERS FOR JAPANESE chip-making equipment have turned upwards again, indicating that economic conditions might be leveling off soon in the semiconductor manufacturing sector.

The fact that people are ordering more tools used to make microchips is seen as a sign that things will be getting better. Sales rose by 22 percent in May from the previous month to $326 million.

However, the industry data collected by the Semiconductor Equipment Association of Japan indicates that things have still got a long way to go before the industry completely recovers. According to Reuters, equipment orders were still down 65 per cent from a year earlier.

While some companies might be circling the drain, others such as Samsung and Intel are splashing out on new gear with aggressive plans to outrun their rivals when an expected recovery comes in the second half of the year. µ