This is no longer a chip shortage — it’s a full electronics supply chain stress cycle.
The Middle Eastern conflict disrupted supplies of crucial raw materials for PCB, which led to an increase in the prices of PCB (Printed Circuit Boards). PCB is used in almost all the electronics devices, whether it is smartphones, computers or AI servers.
In April alone, PCB prices surged as much as 40% from March. The global PCB industry is projected to increase by 12.5% to reach $95.8 billion in 2026, according to a report from Prismark.
Iran struck Saudi Arabia’s Jubail petrochemical complex in April , forcing a halt in production of high-purity polyphenylene ether (PPE) resin – a critical base material used to manufacture PCB laminates.
SABIC accounts for approximately 70% of the world’s high-purity PPE supply and operates in the Jubail complex on the Gulf coast. Shipping in and out of the Gulf has been disrupted by the war , which is severely tightening the availability of the material worldwide.
The growing demand for AI servers has further added to the rise of PCB prices, which have been climbing since last year. Due to high demand since March, manufacturers are racing to secure raw material supplies and soften the impact of skyrocketing costs.
According to Reuters, the rise in PCB prices is also driven by a shortage of other key materials, including glass fiber and copper foil. Copper foil prices have surged as much as 30% so far this year, with the rally gaining momentum in March. Copper makes up around 60% of total raw material costs in PCB manufacturing.
This disruption is the latest setback for electronics manufacturers, which are already facing the soaring prices of memory chips. This indicates the broadening impact of the Iran war that has triggered disruption in supply chains , plastic, and oil supplies.
