Iran War Disrupts PCB Supply Chain, Tech Costs Soar
Geopolitical tensions in the Middle East have halted the production of key raw materials in Saudi Arabia, leading to a 40% surge in PCB prices as AI server demand continues to rise.
📋 Article Processing Timeline
- 📰 Published: April 27, 2026 at 15:09
- 🔍 Collected: April 27, 2026 at 15:32 (23 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 22:27 (30h 55m after Collected)
Industry sources and executives report that the Middle East conflict has disrupted the supply of critical raw materials, pushing up the price of printed circuit boards (PCBs). PCBs are indispensable for various electronic devices, ranging from smartphones and computers to AI servers. The industry was already struggling with soaring memory chip prices, and this new volatility adds to the burden of electronics manufacturers.
Reuters reported that Iran attacked the Jubail petrochemical complex in Saudi Arabia in early April, forcing the shutdown of production lines for high-purity polyphenylene ether (PPE) resin. PPE is a key material for manufacturing PCB substrates. A source revealed that Saudi Basic Industries Corporation (SABIC), which operates the Jubail complex, controls about 70% of the global high-purity PPE resin supply. Production has yet to resume, leading to an extreme global shortage. Furthermore, the war has severely disrupted shipping logistics in the Persian Gulf region.
Three industry sources told Reuters that PCB prices had already begun rising at the end of last year due to surging demand in the AI server market. Since March, the industry has seen a scramble to stockpile materials, causing demand to spike. A recent report by Goldman Sachs analysts pointed out that PCB prices in April jumped 40% compared to March. Anticipating supply shortages for years to come, cloud service providers are also willing to accept further price increases. According to the latest report from Prismark, the global PCB industry is expected to grow by 12.5% in 2026, reaching a market size of $95.8 billion.
Reuters reported that Iran attacked the Jubail petrochemical complex in Saudi Arabia in early April, forcing the shutdown of production lines for high-purity polyphenylene ether (PPE) resin. PPE is a key material for manufacturing PCB substrates. A source revealed that Saudi Basic Industries Corporation (SABIC), which operates the Jubail complex, controls about 70% of the global high-purity PPE resin supply. Production has yet to resume, leading to an extreme global shortage. Furthermore, the war has severely disrupted shipping logistics in the Persian Gulf region.
Three industry sources told Reuters that PCB prices had already begun rising at the end of last year due to surging demand in the AI server market. Since March, the industry has seen a scramble to stockpile materials, causing demand to spike. A recent report by Goldman Sachs analysts pointed out that PCB prices in April jumped 40% compared to March. Anticipating supply shortages for years to come, cloud service providers are also willing to accept further price increases. According to the latest report from Prismark, the global PCB industry is expected to grow by 12.5% in 2026, reaching a market size of $95.8 billion.