US-Israel war on Iran disrupts global circuit board supply, hikes costs
Disruptions to key petrochemicals and metals ripple through electronics sector as manufacturers scramble for materials
TEHRAN, Iran (MNTV) — The U.S.-Israel war on Iran has disrupted supplies of critical raw materials and driven a sharp surge in prices for printed circuit boards, a core component used in nearly all electronic devices, from smartphones to AI servers, according to a report published Monday.
Reuters reported that the disruption is delivering another blow to global electronics manufacturers already grappling with rising memory chip costs, highlighting the widening impact of the conflict on supply chains, plastics and oil markets.
The disruption intensified after Iran’s retaliatory strike on the Jubail petrochemical complex in Saudi Arabia in early April halted production of high-purity polyphenylene ether resin, a key material used in PCB laminates.
SABIC, which operates at the Jubail complex and produces roughly 70% of the world’s high-purity PPE supply, has yet to fully resume output, sharply constraining global availability, according to industry sources.
PCB prices had already been climbing since late last year amid growing demand tied to artificial intelligence infrastructure. However, three industry sources told Reuters that demand accelerated in March as manufacturers rushed to secure supplies and hedge against further cost increases.
Analysts at Goldman Sachs said PCB prices jumped as much as 40% in April compared with March alone, adding that cloud service providers remain willing to absorb higher costs amid expectations that demand will continue to outpace supply.
A report by Prismark projects the global PCB market will expand 12.5% to reach $95.8 billion in 2026, underscoring the sector’s growth despite mounting pressures.
At the manufacturing level, supply constraints are forcing companies to rethink priorities. A senior executive at Daeduck Electronics said discussions with major clients — including Samsung Electronics, SK Hynix and AMD — have shifted toward price adjustments.
“My priority has now changed from meeting customers to suppliers,” the executive said, noting that waiting times for key materials such as epoxy resin have stretched to 15 weeks from just three weeks previously.
The price surge is also being fueled by shortages of other essential inputs, including glass fiber and copper foil. One source said copper foil prices have climbed as much as 30% this year, with gains accelerating in March.
China-based Victory Giant Technology, a supplier to Nvidia, said copper accounts for about 60% of total raw material costs in PCB production and warned the regional conflict could further push up prices for resin and copper.
The company said multilayer PCBs currently cost about 1,394 yuan ($204) per square meter, while high-end versions used in AI servers can reach around 13,475 yuan, reflecting the growing cost pressures across the electronics supply chain.
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