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Middle East Conflict Drives Up PCB Prices, Increasing Costs for High-Tech Firms
Middle East Conflict Disrupts PCB Raw Material Supply Chain
The Middle East conflict has led to a sharp increase in Printed Circuit Board (PCB) prices. The rising cost of PCBs, essential for nearly all electronic devices including smartphones, computers, and AI servers, is directly attributed to disruptions in the supply of critical raw materials. A key factor was Iran's attack on Saudi Arabia's Jubail petrochemical facility in early April, which halted the production of high-purity Polyphenhenylene Ether (PPE) resin, vital for PCB laminate manufacturing. According to an anonymous source, SABIC, which accounts for approximately 70% of the global high-purity PPE supply, has not resumed production at its Jubail facility, creating a severe shortage of the material worldwide.
Surging AI Server Demand and Shipping Instability Fuel Price Hikes
Shipping disruptions in and out of the Persian Gulf are further destabilizing the PCB supply chain. Driven by increasing demand for AI servers, PCB prices have been on an upward trend since late last year, with industry sources indicating a rapid acceleration in demand since March. Analysts at Goldman Sachs noted in a recent report that PCB prices surged by up to 40% in April alone compared to March. Cloud service providers anticipate demand will outstrip supply for several years, suggesting a willingness to absorb further price increases. A report by Prismark projects that the global PCB market will expand by 12.5% to $95.8 billion in 2026.
*Source: Reuters (2026-04-27)*
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