Industry sources say the war has disrupted supplies of key raw materials used in PCB production, contributing to sharp price increases. A particular concern is the interruption to high‑purity polyphenylene ether (PPE) resin, a critical input for PCB laminates, after an attack on Saudi Arabia’s Jubail petrochemical complex earlier this month. Production has yet to resume, significantly tightening global availability.
Logistics challenges are compounding the problem, with shipping in and out of the Gulf region heavily affected. At the same time, demand for PCBs has been accelerating, driven largely by continued investment in AI servers.
PCB prices were already rising late last year but have escalated rapidly in recent months as manufacturers try to secure materials. Other inputs, including copper foil, have also seen substantial price increases, further pushing up costs across the supply chain.
The disruption is a fresh blow to electronics manufacturers who are already having to contend with soaring memory chip costs, and it highlights the broadening impact of the Iran war that has wreaked havoc on supply chains, plastics, and oil supplies.
While global PCB industry is projected to increase by 12.5% to reach $95.8 billion in 2026, according to a recent report from Prismark, it now appears that geopolitics is set to become a permanent variable in electronics manufacturing.
PCB sourcing, which was once considered relatively stable, is now joining semiconductors, batteries and rare earths as a strategic concern – and can be expected to shape investment decisions well beyond the current conflict.