Middle East Conflict Drives 40% PCB Price Rise

The Middle East conflict has severely disrupted global supplies of printed circuit boards, essential components in smartphones, laptops, AI servers, and other electronics, driving prices up as much as 40 percent in April compared to March, according to Goldman Sachs analysts.

In early April, Iranian forces struck Saudi Arabia's Jubail petrochemical complex on the Gulf coast, halting production of high-purity polyphenylene ether resin, a critical base material for PCB laminates. Saudi Basic Industries Corporation, or SABIC, which operates the facility and supplies about 70 percent of the world's high-purity PPE, has been unable to resume output, industry sources said. Shipping routes in and out of the Gulf, including the Strait of Hormuz, have also faced major interruptions, compounding the shortages.

The ripple effects have intensified pressures on electronics manufacturers already contending with rising demand for AI infrastructure. PCB prices had begun climbing late last year amid surging orders for AI servers, with demand accelerating in March as companies stockpiled materials. A senior executive at South Korean PCB maker Daeduck Electronics, which supplies Samsung...