How Middle East Conflict Affects Global Printed Circuit Board Supply and Prices

Apr 27, 2026, 05:06

Introduction

Political instability in the Middle East has disrupted the supply of essential raw materials. This has led to a significant increase in the cost of printed circuit boards (PCBs), which are used throughout the electronics industry.

Main Body

The current shortage is mainly caused by an April attack by Iran on the Jubail petrochemical complex in Saudi Arabia. This event forced a stop in the production of high-purity PPE resin, a key material used to make PCB laminates. Because SABIC controls about 70 percent of the global market for this resin and has been unable to restart its facility, global availability has dropped sharply. Furthermore, shipping problems in the Gulf region have made the situation worse. At the same time, PCB prices have risen since late 2025 due to the high demand for AI servers. Goldman Sachs reported that prices jumped by as much as 40 percent in April compared to March. Experts claim that cloud service providers are willing to pay these higher costs because they expect demand to stay higher than supply for several years. Prismark supports this view, predicting that the global PCB market will grow by 12.5 percent and reach a value of US$95.8 billion by 2026. In addition to resin shortages, the lack of glass fiber and copper foil has increased price volatility. Copper foil prices rose by about 30 percent in 2026, and since copper makes up roughly 60 percent of raw material costs, this has a huge impact. Victory Giant Technology emphasized the price difference between standard PCBs and high-end AI server models, which are much more expensive. As a result, companies like Daeduck Electronics have had to renegotiate prices with clients, as delivery times for chemicals have increased from three weeks to 15 weeks.

Conclusion

The combination of geopolitical conflict and the high demand for AI technology has caused a serious shortage of raw materials. This has resulted in much higher prices and longer waiting times for the global PCB industry.

Vocabulary Learning

demand (n.)

the desire or need for something, especially in large quantities需求

Example:High demand for AI servers has driven PCB prices upward.

disrupted (v.)

to interrupt the normal flow or operation of something破壞；擾亂

Example:Political instability in the Middle East disrupted the supply of essential raw materials.

renegotiate (v.)

to negotiate again, especially to change terms重新談判

Example:Companies have had to renegotiate prices with clients due to longer delivery times.

shortage (n.)

a lack or insufficient supply of something缺乏；短缺

Example:The current shortage is mainly caused by an April attack by Iran.

volatility (n.)

the quality of being unstable or unpredictable, especially in prices波動性

Example:Price volatility increased as resin shortages spread.

Sentence Learning

This has led to a significant increase in the cost of printed circuit boards (PCBs), which are used throughout the electronics industry.

Relative Clause: The clause 'which are used throughout the electronics industry' gives additional information about PCBs.關係子句: 子句 'which are used throughout the electronics industry' 為 PCBs 提供額外資訊，說明它們被廣泛應用於電子產業。

The current shortage is mainly caused by an April attack by Iran on the Jubail petrochemical complex in Saudi Arabia.

Passive Voice: The sentence uses passive voice to emphasize the shortage rather than the attackers.被動語態: 句子使用被動語態，強調短缺的發生，而非攻擊者的行動。

Because SABIC controls about 70 percent of the global market for this resin and has been unable to restart its facility, global availability has dropped sharply.

Linking Word (Because): 'Because' introduces a reason for the drop in availability.連接詞 (Because): 'Because' 用於引出全球可用性下降的原因。

Since copper makes up roughly 60 percent of raw material costs, this has a huge impact.

Linking Word (Since): 'Since' explains the cause of the impact.連接詞 (Since): 'Since' 用於說明影響的原因。

As a result, companies like Daeduck Electronics have had to renegotiate prices with clients, as delivery times for chemicals have increased from three weeks to 15 weeks.

Linking Word (As a result): 'As a result' signals a consequence of previous factors.連接詞 (As a result): 'As a result' 表示前述因素的後果。