US Semiconductor Prices Are Surging Sharply

October 24 – Data from independent research firm The Kobeissi Letter shows that in September, producer prices for US semiconductor and other electronic component manufacturing surged 26% year over year, the fourth-largest increase on record. It also marked the sixth consecutive month in which the index posted a year-over-year gain of at least 25%. Since July 2025, the producer price index (PPI) for semiconductor and other electronic component manufacturing has risen 31% in cumulative terms, reaching its second-highest level since January 2007. By comparison, the index declined every year between 1994 and 2021. Meanwhile, producer prices for electronic components and accessories soared 27% year over year last month, also the sixth consecutive month with a year-over-year increase of at least 25%. The artificial intelligence (AI) revolution is triggering an unprecedented wave of "tech inflation."