Semiconductors Pamphlet - Bureau of Labor Statistics

passengerdewberrySemiconductor

Nov 1, 2013 (3 years and 9 months ago)

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www.bls.gov 
Recent Price Trends in the 
Semiconductor Industry  
International Price Program • mxpinfo@bls.gov • www.bls.gov/mxp • (202) 691 7101
 
 
 
 
 
 
 
 
 
 
 
 
 
Q: How have import semiconductor prices
trended over the 2010–2012 period? (See chart 1.)


With the exception of a few sporadic and short-lived
increases, the import price index for semiconductors
trended down over the past three years, falling 6.8
percent overall.

High competition and rapid technological advancement
led to falling prices over most of the three-year period.

Inventory levels tightened during 2010 and led to a
sharp increase in prices from June to September.
Another sharp break in the negative trend occurred in
mid-2011 as a result of market worries about the supply
from Japan after the March 2011 earthquake.
Q: How did import semiconductor prices
compare with other economic data?


Domestic semiconductor prices trended down
between 2010 and 2012, and recorded a sharper
decline for the period than import prices. Between
2010 and 2012, the price index for domestic
semiconductors fell 9.0 percent.


The dollar value of semiconductor imports rose over
the three year period, especially in 2010 when it
increased 5.8 percent from the previous year. By the
end of 2012, the trade dollar value of semiconductor
imports fell 0.8 percent compared to 2011 values.
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.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
90.0
92.0
94.0
96.0
98.0
100.0
102.0
104.0
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
Dollar value  for 
semiconductor imports
(U.S. Census  Bureau)
Semiconductor 
imports price index
(U.S. Bureau of  Labor Statistics)
Semiconductor
producer price index 
(U.S. Bureau of  Labor Statistics)
Index 
(Jan 2010= 100)
Dollar value
(millions)
Im
p
ort semiconductor 
p
rice indexes and dollar  values 
2010
2011
2012
Chart  1.
 
 
International Price Program • mxpinfo@bls.gov • www.bls.gov/mxp • (202) 691 7101
 Import/Export Price Indexes (MXP)                                                                                             www.bls.gov/mxp 
Last Modified Date:June 17
,
2013
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Q: How have export semiconductor prices
trended over the 2010–2012 period?
(See chart 2.)


Export prices reflected in U.S. dollar terms
declined 1.3 percent from 2010 through 2012. Poor
global demand following the economic downturn at
the end of 2008, along with the highly competitive
nature of this industry drove prices lower over the
three-year period.


Q: How did export semiconductor prices
compare with other economic data?


Export price indexes in foreign currency terms can
be approximated by multiplying the dollar price
index by an index of the movement of the U.S.
dollar compared to a weighted average of the
currencies of major trading partners produced by
the Federal Reserve.


Over the three-year period, export semiconductor
prices in foreign currency terms fluctuated more
than the export price index in dollar terms. As the
dollar depreciated during the second half of 2010
up to the third quarter of 2011, export prices in
foreign currency terms fell, decreasing 10.8
percent. A stronger dollar contributed to higher
prices in 2012.

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
inflation.

For example, if you are involved in the semiconductor
industry and you are considering conducting business
overseas, IPP semiconductor 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.
0
1,000
2,000
3,000
4,000
5,000
6,000
80.0
85.0
90.0
95.0
100.0
105.0
110.0
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
Dollar value  for
U.S. semiconductors  exports
(U.S. Census  Bureau)
Export price index
in dollar terms
(U.S. Bureau of  Labor Statistics)
Export price index
in foreign currency terms
(U.S. Bureau of  Labor Statistics)
Index
(Jan 2010= 100)
Dollar value
(millions)
Export semiconductor  price indexes and dollar  values  
2010 2011
2012
Chart 2.