The ongoing conflict involving Iran is now affecting the global electronics industry. A recent attack on a major petrochemical facility in Saudi Arabia has disrupted the supply of key materials used to make printed circuit boards (PCBs). As a result, manufacturers around the world are facing rising costs and shortages. PCBs are essential components found inside almost every electronic device from smartphones and laptops to advanced AI servers. Attack on Petrochemical plant triggers material shortage In early April, Iran struck Saudi Arabia’s Jubail petrochemical complex. This facility produces high-purity polyphenylene ether (PPE) resin, a critical material used to manufacture PCB laminates. Saudi chemical giant SABIC, which supplies about 70% of the world’s high-purity PPE resin, operates from this complex. Since the attack, production has not fully resumed, tightening global supply. Shipping routes in and out of the Gulf region have also been disrupted due to the conflict, making it even harder for manufacturers to secure materials. PCB prices rise up to 40% in April PCB prices have already been increasing since late last year, mainly because of strong demand for AI servers. But the situation worsened in March as companies rushed to secure limited supplies. According to analysts, PCB prices surged as much as 40% in April compared to March. Cloud service providers are still willing to pay higher prices because they expect demand for AI infrastructure to remain strong in the coming years. Shortages spread beyond resin The price jump is not only due to PPE resin shortages. Other important materials are also becoming expensive and harder to find. For example: Copper alone accounts for about 60% of total PCB raw material costs, making its price rise especially serious for manufacturers. Electronics companies feel the pressure Major PCB manufacturers are already responding to these rising costs. South Korea’s Daeduck Electronics, which supplies companies like Samsung Electronics, SK Hynix, and AMD, has started discussions with customers about possible price increases. Executives say their focus has shifted from managing customer orders to securing raw materials from suppliers. AI boom adds more pressure on supply Demand for high-end PCBs used in AI servers is growing rapidly. These advanced boards are much more expensive than regular ones. For example: Industry forecasts suggest the global PCB market could grow 12.5% to reach $95.8 billion (₹9.02 lakh crore) by 2026, showing how important these components are becoming. New challenge for the tech industry Electronics companies were already dealing with rising memory chip prices. Now, shortages of resin, copper, and other materials are adding another layer of difficulty. The Middle East conflict is no longer just a regional issue it is quickly becoming a global technology supply chain challenge.
