Recent Price Trends in the Semiconductor Industry
An overview of Semiconductor Manufacturing price indexes
U.S. Import and Export Price Indexes contain data on changes in the prices of nonmilitary goods and services traded between the United States and the world. The U.S. Bureau of Labor Statistics produces these indexes, which are Principal Federal Economic Indicators.
Q: How have import semiconductor prices trended over the 2020–2022 period? (See chart 1)
- Semiconductor manufacturing import prices advanced 5.7 percent from December 2019 to December 2022. The import semiconductor manufacturing price index fell 1.6 percent in 2020 and increased 4.9 percent in 2021. The price index rose a further 2.4 percent in 2022.
- Import prices for semiconductor manufacturing peaked in July 2022 for the 3-year period ended December 2022 and reached a low point in December 2020.
- Import prices for semiconductor manufacturing increased throughout 2021 due to strained supply chains and heightened demand during the Covid-19 pandemic. Higher raw material costs contributed to the rise of semiconductor import prices in 2022. Increased prices for semiconductors impacted a number of reliant industries.
Q: How did import semiconductor prices compare with other economic data?
- Import and producer prices declined sharply compared to export prices going into 2020. In 2021, import prices increased at a faster rate than both export and producer prices. Throughout 2022, import prices for semiconductors continued to rise along with export and producer prices.
- The producer price index for semiconductor manufacturing increased 3.6 percent over the 3-year period from December 2019 to December 2022. The index fell 2.7 percent in 2020 before advancing 2.4 percent in 2021. Producer prices rose 4.0 percent in 2022.
Q: How have export semiconductor prices trended over the 2020–2022 period? (See chart 1)
- The export semiconductor manufacturing price index advanced 7.0 percent from December 2019 to December 2022. Export semiconductor manufacturing prices increased 3.6 percent in 2020, followed by a 1.9-percent advance in 2021. In 2022, export semiconductor manufacturing prices rose 1.4 percent.
- The 2020 increase was the largest calendar-year rise since 12-month changes for export semiconductor manufacturing prices were first published in December 2006.
Q: What are the top six exporting states and territories for semiconductor manufacturing? (See chart 2)
- In 2022, the total trade value of exported semiconductors was $75.4 billion, a 1.3-percent increase from 2021. The top 6 exporting states made up 71.1 percent of the total trade value.
- Texas and Oregon totaled $32.4 billion in semiconductor manufacturing exports in 2022, ranking first and second in the United States.
- California ranked third with $11.3 billion in trade dollar value, making up 14.9 percent of total export trade value of semiconductors in 2022.
Q: How are import and export price indexes useful to you?
Import and export price indexes can provide a new perspective for your trade analyses. Although many sources report domestic market prices and trade volume, IPP data are unique in measuring import and export price movement.
For example, if you are involved in the semiconductor industry and are considering conducting business overseas, IPP semiconductor manufacturing indexes can supplement your industry research by providing long-term import and export price trends.
Q: How are import and export price indexes used?
Import and export price indexes are used for a variety of purposes:
- In the conversion of U.S. trade figures from current dollars to constant dollars in U.S. trade statistics including the Bureau of Economic Analysis’ Quarterly Gross Domestic Product and the Census Bureau’s monthly U.S. trade statistics.
- To assess the impact of international trade on domestic inflation and the competitive position of the United States.
- As a tool for analyzing fiscal and monetary policy, measuring the impact of exchange rates, and escalating trade contracts.
- To identify industry-specific and global price trends.
Last Modified Date: July 12, 2023