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Iran War Disrupts Global Circuit Board Supply Chain, Driving Up Costs for Tech Firms
Tech firms face rising costs amid material shortages
ND
by News Desk
2026-04-27
Iran War Disrupts Global Circuit Board Supply Chain, Driving Up Costs for Tech Firms

The ongoing conflict in the Middle East, particularly involving Iran, is increasingly affecting the global electronics industry by disrupting supplies of essential raw materials used in printed circuit boards (PCBs).

PCBs are a core component in nearly all electronic devices, including smartphones, computers, and advanced AI servers. Industry officials say the war has caused shortages of key inputs, adding fresh pressure on manufacturers already struggling with rising semiconductor costs.

A major setback came after an attack on a petrochemical complex in Jubail, Saudi Arabia, which halted production of high-purity polyphenylene ether (PPE) resin — a critical material used in PCB manufacturing. The facility is operated by SABIC, which supplies a significant share of the global market. With production still not fully restored, the availability of PPE has tightened worldwide.

Shipping disruptions across the Gulf region have further complicated supply chains, delaying deliveries and increasing costs for manufacturers.

Demand for PCBs has been rising steadily, driven largely by the rapid expansion of AI infrastructure. However, since March, companies have accelerated procurement efforts to secure materials, pushing prices even higher. Analysts estimate PCB prices jumped by as much as 40 percent in April alone.

The cost increase is also linked to shortages of other key materials such as glass fiber and copper foil. Copper, which makes up a large portion of PCB production costs, has seen a significant price surge this year.

Major manufacturers, including firms supplying global tech giants, are now in talks with customers about passing on higher costs. At the same time, procurement timelines for essential chemicals have stretched significantly, indicating deeper supply constraints.

Despite these challenges, the global PCB market is expected to continue growing, fueled by strong demand from sectors like cloud computing and artificial intelligence. However, experts warn that if disruptions persist, the rising costs could impact pricing and production across the broader technology industry.
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#IranWar #TechIndustry #SupplyChain #CircuitBoards #Semiconductors #GlobalEconomy #AI #Electronics #BreakingNews #BusinessNews
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