Book-to-Bill Declines in December

The computer chip industry’s monthly book-to-bill ratio measuring demand fell to 1.10 in December from November’s revised ratio of 1.16. The Semiconductor Industry Assn. said the decline was caused by a 2.9% drop in new orders. Bookings fell to $3.87 billion in December from $3.98 billion in November. The ratio compares the value of chips shipped in the North American market to the value of new orders received. A ratio of 1.10 means that for every $100 in chips shipped, $110 in new orders was received. Analysts said the decline in the ratio was expected because November is traditionally the strongest month of the year as personal computer makers gear up for the expected holiday rush.