Circuit Board Supply Hit by Iran War May Spike Electronics Prices Globally

The conflict in the Middle East has disrupted supplies of crucial raw materials and pushed up prices of the printed circuit boards(PCB) used in almost all electronic devices, from smartphones and computers to AI servers, industry sources and executives told Reuters.

What’s Behind PCB Shortage

The disruption is a fresh blow to electronics manufacturers which are already grappling with soaring memory chip costs and highlights the broadening impact of the Iran war that has wreaked havoc on supply chains, plastics and oil supplies.

Iran stuck Saudi Arabia’s Jubail petrochemical complex in early April, forcing a halt in production of high-purity polyphenylene ether resin—a critical base material used to manufacture PCB laminates.

Reuters further reported that SABIC, which accounts for approximately 70% of the world’s high-purity PPE supply and operates in the Jubail complex on the Gulf coast, has been unable to resume output, severely tightening the availability of the material worldwide. Shipping in and out of the Gulf has also been severely disrupted by the war.

Why PCB Prices Are Rising

Qatar provides over a third of the world’s helium, used in semiconductor lithography, while two-thirds of bromine (used for etching) comes from Israel and Jordan. Both are at risk of prolonged supply shocks.

Shortage of other raw materials including glass fiber and copper foil also results in the sharp rise in PCB in prices. Copper foil prices have surged as much as 30% so far this year, with the rally gaining momentum in March.

Copper accounts for around 60% of total raw material costs in PCB manufacturing, Reuters reported citing Victory Giant Technology, a major Chinese PCB supplier for Nvidia. The Chinese firm warned earlier this month that the Middle East conflict could push up prices for key materials including resin and copper.

Multi-layer PCBs can cost around 1,394 yuan per square metre, with higher-end models for artificial intelligence (AI) servers costing around 13,475 yuan, according to Victory Giant.

According to a March 2 report published by The Economic Times, India’s 4.5bn of electronics and tech exports to the Gulf despite negligible trade in these items with Iran itself. The UAE was the second-largest buyer of India's electronic products, according to data from the commerce and industry ministry. In the first nine months (April-December) of FY26, the UAE was the destination for $4.1bn of electronics exports.

A report published by Deloitte Global Economics Research Center in March 2026 stated that the conflict is set to deepen global economic uncertainty with no clear resolution in sight, disrupting supply chains, surging inflation and weighing on trade and investment flows.