Did long-term contractual relationships help reduce semiconductor prices?

While an explanation requires careful research, it is possible that long-term contractual relationships between producers of some final goods (such as iPhones) and their suppliers of chips may have helped mitigate fluctuations in the overall semiconductor price index.

How did the semiconductor manufacturing price index perform in 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.

How have semiconductor prices trended over the 3 year period?

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)