Iran war disrupts the circuit board supply chain
The conflict in the Middle East has disrupted supplies of raw materials used in printed circuit boards (PCB), pushing up prices, with PCB prices surging as much as 40% in April from March. The global PCB industry is projected to increase by 12.5% to reach US$95.8bil in 2026.
The conflict in the Middle East has disrupted supplies of crucial raw materials used in printed circuit boards (PCB). Iran's strike on Saudi Arabia's Jubail petrochemical complex in early April halted production of high-purity polyphenylene ether (PPE) resin, a critical base material for PCB laminates. Sabic, accounting for 70% of the world's high-purity PPE supply, has been unable to resume output, severely tightening global availability. PCB prices surged 40% in April from March, driven by growing demand for AI servers and shortages of key materials like glass fiber and copper foil. Daeduck Electronics, a South Korean PCB maker, has begun discussions with customers over price increases. The global PCB industry is projected to reach US$95.8bil in 2026.
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