Iran war disrupts the circuit board supply chain, raises costs for tech firms

• SABIC, which controls approximately 70% of global high-purity PPE resin supply, remains unable to resume production at the attacked Jubail facility, severely tightening worldwide material availability
• PCB prices jumped as much as 40% in April from March levels, driven by both the material shortage and accelerating AI server demand, with copper foil prices up 30% year-to-date
• Lead times for chemical materials like epoxy resin have stretched from 3 weeks to 15 weeks, forcing manufacturers like Daeduck Electronics to negotiate price increases with major customers including Samsung and AMD

Summary: Iran War Disrupts Circuit Board Supply Chain, Raises Costs for Tech Firms

The ongoing Middle East conflict has severely disrupted the global printed circuit board (PCB) supply chain, driving sharp price increases for components used in smartphones, computers, and AI servers.

Key Development: Iran's attack on Saudi Arabia's Jubail petrochemical complex in early April halted production of high-purity polyphenylene ether (PPE) resin, a critical raw material for PCB manufacturing. SABIC, which controls approximately 70% of global high-purity PPE supply and operates at the facility, remains offline. Gulf shipping disruptions have further exacerbated supply constraints.

Price Impact: PCB prices surged up to 40% in April 2026 alone, according to Goldman Sachs analysts. This follows price increases beginning in late 2025 driven by AI server demand. Copper foil prices have jumped 30% year-to-date, with momentum accelerating in March. Copper represents roughly 60% of total PCB raw material costs.

Market Data: The global PCB industry is projected to grow 12.5% to $95.8 billion in 2026, per Prismark. Multi-layer PCB pricing ranges from 1,394 yuan ($204) per square meter for standard boards to 13,475 yuan for high-end AI server models.

Industry Response: South Korean PCB maker Daeduck Electronics, which supplies Samsung Electronics, SK Hynix, and AMD, has initiated price increase discussions with customers. Lead times for chemical materials like epoxy resin have extended from three weeks to 15 weeks. Chinese supplier Victory Giant warned that material shortages for resin and copper will continue pressuring costs.

Broader Impact: Cloud service providers are accepting price increases, anticipating demand will exceed supply in coming years. The disruption adds pressure to electronics manufacturers already facing supply chain challenges.