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 2018–2020 period? (See chart 1)
- Semiconductor manufacturing import prices declined 5.4 percent from December 2017 to December 2020. The import semiconductor manufacturing price index increased 1.5 percent in 2018 and fell 5.3 percent in 2019. The price index then declined a further 1.6 percent in 2020.
- Import prices for semiconductor manufacturing peaked in October 2018 for the 3-year period ended December 2020 and reached a new low in December 2020.
- Import prices for semiconductor manufacturing increased from January 2020 to May 2020 during the onset of stay at home restrictions in the United States and internationally becuase of the Covid-19 pandemic. Import prices then declined from June 2020 to the end of the year.
Q: How did import semiconductor prices compare with other economic data?
- International semiconductor manufacturing price indexes trended similarly to domestic price producers. However, import prices declined more sharply than export prices in 2019. Unlike import and export prices, producer prices declined over the first half of 2020.
- The producer price index for semiconductor manufacturing decreased 0.7 percent from December 2017 to December 2018. Producer prices for semiconductor manufacturing did not change for 2019, then declined 2.7 percent from December 2019 to December 2020. Producer prices for semiconductors decreased 3.4 percent over the 3-year period ended December 2020.
Q: How have export semiconductor prices trended over the 2018–2020 period? (See chart 1)
- The export semiconductor manufacturing price index advanced from December 2017 to December 2020, increasing 4.3 percent. Export semiconductor manufacturing prices increased 1.5 percent in 2018 followed by a 0.8 percent decline in 2019. Then export semiconductor manufacturing prices increased 3.6 percent in 2020.
- For the 3-year period ended December 2020, export semiconductor prices bottomed out in October 2019 and peaked in June 2020 before flattening for the remainder of the year.
Q: What are the top six exporting states and territories for semiconductor manufacturing? (See chart 2)
- In 2020, the total trade value of exported semiconductors was $63.1 billion, a 5.6-percent increase from 2019. The top 6 exporting states made up 72.0 percent of the value.
- Texas and California totaled $28.5 billion in semiconductor manufacturing exports in 2020, ranking first and second in the United States.
- Oregon ranked third with $10.5 billion in trade dollar value, a 27.7-percent increase from the state’s total export trade value of semiconductors in 2019.
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 chemical industry and are considering conducting business overseas, IPP chemical 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: October 29, 2021