Middle East Conflict Disrupts PCB Supply Chain, Increasing Costs for Hi-Tech Firms

The Middle East conflict has disrupted the supply of critical raw materials, leading to a surge in prices for Printed Circuit Boards (PCBs) used in smartphones, computers, and AI servers. An attack on a Saudi facility halted the production of a key material, exacerbating supply shortages.

Mon Apr 27 2026

PCB Price Hike Due to Middle East Conflict

The deepening Middle East conflict has caused a significant price increase for Printed Circuit Boards (PCBs), essential components in nearly all electronic devices, from smartphones and computers to AI servers. Industry sources indicate that the primary cause is the suspension of high-purity Polyphenylene Ether (PPE) resin production, a crucial base material for PCB laminates, following an Iranian attack on a Saudi Arabian Jubail petrochemical facility. Notably, SABIC, which accounts for approximately 70% of the global high-purity PPE supply, has been unable to resume production at the Persian Gulf facility, leading to severe global supply shortages.

Rising AI Demand and PCB Market Outlook

The increasing demand for AI servers has driven PCB prices up since late last year, with demand accelerating sharply since March. Analysts at Goldman Sachs reported that PCB prices surged by up to 40% in April alone compared to March. Cloud service providers anticipate that demand will continue to outstrip supply for several years, making them willing to accept further price increases. According to a recent report by Prismark, the global PCB market is projected to grow by 12.5% in 2026, reaching 95.8 billion dollars.

*Source: ニューズウィーク日本版 (2026-04-27)*

Tags: #Middle East Conflict #PCB #Supply Chain #Hi-Tech #AI Servers