THE MIND OF THE PEOPLE – The conflict in the Middle East triggered by tensions with Iran is now having a widespread impact on the global technology industry. Disruptions in the supply of critical raw materials have pushed up prices of printed circuit boards (PCBs), vital components used in almost all electronic devices, from smartphones to artificial intelligence (AI) servers.
Reporting from Reuters, this condition creates additional pressure for electronics manufacturers who were already facing increasing costs of memory chips.
Supply Disruption from the Middle East
The main trigger for this crisis was the attack on the Jubail petrochemical complex in Saudi Arabia in early April 2026. The attack led to the halt in production of high-purity polyphenylene ether (PPE) resin, the main raw material in making PCB laminates.
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The giant petrochemical company SABIC, which controls around 70 percent of the global supply of high-purity PPE, has not been able to resume production. As a result, the supply of this material has shrunk drastically on the world market. Apart from that, logistics routes in the Gulf region have also been disrupted, worsening the distribution of raw materials.
Prices Soar due to Demand and Scarcity
The increase in PCB prices has actually started to be felt since the end of 2025, driven by increasing demand for AI servers. However, the spike has become sharper since March 2026 as manufacturers race to secure raw material stocks.
In one month, PCB prices reportedly jumped by 40 percent. Analysts from Goldman Sachs predict that this trend will continue, considering that demand is predicted to continue to exceed supply in the next few years.
Not only PPE resin, the shortage of other materials such as glass fiber and copper foil also worsens the situation. The price of copper itself has risen by around 30 percent this year, even though this material accounts for around 60 percent of the total PCB production costs.
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Impact on the Global Technology Industry
A number of manufacturers are starting to feel the pressure directly. Daeduck Electronics, a supplier to major companies such as Samsung Electronics, SK Hynix, and AMD, has even opened talks with customers regarding price adjustments.
A company executive revealed that the focus is now shifting from customers to suppliers. Waiting times for chemicals such as epoxy resin have jumped sharply, from three weeks to up to 15 weeks, reflecting serious pressure in the supply chain.
Meanwhile, a manufacturer from China, Victory Giant Technology, also warned that geopolitical conflicts had the potential to drive further increases in raw material prices.
Industry Prospects and Future Risks
According to the Prismark report, the global PCB industry is projected to grow 12.5 percent to reach a value of 95.8 billion US dollars in 2026. However, amidst this growth, the risk of supply disruptions and price spikes is a major challenge.
Currently, the price of a multilayer PCB is around 1,394 yuan or around 204 US dollars per square meter. Meanwhile, high-end models for AI servers can reach 13,475 yuan per square meter.
This condition shows that geopolitical conflicts do not only impact the energy sector, but also spread to the global technology industry. If supply disruptions continue, it is not impossible that the prices of electronic devices at the consumer level will also be affected in the near future.***
