Iran-linked conflict disrupts global PCB supply chains, sending prices soaring and intensifying pressure on the electronics and AI industries.
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| Electronics makers face rising costs and delays as geopolitical tensions choke raw material supply for printed circuit boards worldwide. Image: CH |
Jubail, Saudi Arabia — April 27, 2026:
The ongoing conflict involving Iran is rapidly reshaping the global electronics supply chain, triggering sharp price increases for printed circuit boards (PCBs) and exposing deep structural vulnerabilities in the technology sector.
At the center of the disruption is a production halt at Saudi Arabia’s major petrochemical hub in Jubail. Following an attack linked to the conflict, output of high-purity polyphenylene ether (PPE) resin—an essential material for PCB laminates—was suspended. The impact is particularly severe due to the dominance of SABIC, which produces around 70% of the global supply of this material. With production yet to resume, availability has tightened worldwide.
The effects are spreading across industries. Shipping routes through the Gulf have been disrupted, increasing delivery times and transportation costs. At the same time, shortages of key materials such as glass fiber and copper foil are adding to price pressures. Copper, which accounts for a significant portion of PCB production costs, has seen prices rise sharply this year.
Analysts at Goldman Sachs report that PCB prices surged by as much as 40% in April compared to March, marking an unusually steep increase. This comes on top of already elevated costs for memory chips, compounding challenges for electronics manufacturers.
Demand is further intensifying the strain. The rapid expansion of artificial intelligence infrastructure, including data centers and cloud services, has significantly increased the need for high-performance PCBs. Major cloud providers are continuing to accept higher prices, expecting demand to remain strong.
Manufacturers are adjusting their strategies in response. Daeduck Electronics, which supplies companies such as Samsung Electronics, SK Hynix, and AMD, has begun negotiating price increases with customers. Industry executives indicate that the focus has shifted from meeting demand to securing raw materials, as lead times for critical inputs have expanded significantly.
Meanwhile, Victory Giant Technology has warned that continued instability could push prices even higher, particularly for advanced multi-layer PCBs used in AI systems.
Despite current disruptions, the long-term outlook remains positive. According to Prismark, the global PCB market is expected to reach $95.8 billion by 2026, driven by growth in AI, automotive electronics, and advanced computing technologies.
However, the crisis highlights a key weakness in the global technology ecosystem: its reliance on a concentrated supply of critical materials. As the conflict continues, companies worldwide are preparing for sustained cost increases, supply shortages, and ongoing uncertainty.