The ongoing conflict in the Middle East has disrupted the supply of key raw materials and pushed up global prices of printed circuit boards (PCBs), which are used in nearly all electronic devices, industry sources and executives have said.
The disruption is adding further pressure on electronics manufacturers already facing rising memory chip costs while highlighting the widening impact of tensions linked to the Iran conflict on global supply chains, including oil, plastics, and industrial inputs.
Industry reports indicate that an attack on Saudi Arabia’s Jubail petrochemical complex earlier in April forced a halt in production of high-purity polyphenylene ether (PPE) resin, a key material used in PCB laminates.
The facility is operated by SABIC, which supplies about 70% of global high-purity PPE output. Production has not yet fully resumed, tightening global supply, while shipping routes in parts of the Gulf have also been disrupted.
Analysts say PCB prices have been rising steadily since late last year due to surging demand from artificial intelligence infrastructure, particularly AI servers. The pressure has intensified in recent months as manufacturers rush to secure raw materials.
In April alone, PCB prices reportedly jumped by as much as 40% compared to March, according to market analysts cited in industry reports. Cloud computing companies are said to be absorbing higher costs amid expectations of continued demand growth.
The global PCB industry is projected to expand significantly in the coming years, driven largely by AI-related demand and electronics production.
South Korean manufacturer Daeduck Electronics, whose clients include major semiconductor and tech firms such as Samsung and SK Hynix, has reportedly begun discussions with customers over potential price increases.
The company says it is now focusing more on securing raw materials, with lead times for chemical inputs such as epoxy resin extending from about three weeks to as long as 15 weeks.
Other materials, including glass fibre and copper foil, are also in short supply, adding further cost pressures across the industry. Copper alone is said to account for around 60% of PCB raw material costs.
Chinese PCB supplier Victory Giant Technology has warned that ongoing geopolitical tensions could further push up prices of key inputs, including resin and copper, which have already seen significant increases this year.
Multi-layer PCBs used in advanced systems such as AI servers are now selling at significantly higher prices, reflecting both supply constraints and rising global demand.
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