Impact of Middle East Conflict on Global Printed Circuit Board Supply Chains and Pricing

Apr 27, 2026, 05:06

Introduction

Geopolitical instability in the Middle East has resulted in the disruption of essential raw material supplies, contributing to a significant increase in the cost of printed circuit boards (PCBs) utilized across the electronics sector.

Main Body

The current supply deficit is largely attributed to an early April strike by Iran on the Jubail petrochemical complex in Saudi Arabia. This action necessitated a cessation of production for high-purity polyphenylene ether (PPE) resin, a fundamental component in the fabrication of PCB laminates. SABIC, which maintains an approximate 70 percent share of the global high-purity PPE market, has been unable to restart operations at the Jubail facility. This production halt, compounded by impaired maritime logistics within the Gulf region, has severely constrained the global availability of the resin. Concurrent with these geopolitical disruptions, the industry has experienced a sustained increase in PCB prices since late 2025, primarily driven by the escalating demand for AI servers. According to Goldman Sachs, PCB prices increased by as much as 40 percent in April relative to March. Analysis suggests that cloud service providers are prepared to absorb these cost increases due to the anticipation that demand will continue to exceed supply capacity in the coming years. This trend is further supported by Prismark's projection that the global PCB market will expand by 12.5 percent, reaching a valuation of US$95.8 billion by 2026. Beyond resin shortages, the pricing volatility is exacerbated by deficits in other critical inputs, specifically glass fiber and copper foil. Copper foil prices have risen by approximately 30 percent in 2026, with the trend accelerating in March. Data from Victory Giant Technology indicates that copper constitutes roughly 60 percent of the total raw material expenditure in PCB production. The company has noted a significant price variance between standard multi-layer PCBs, priced at approximately 1,394 yuan per square metre, and high-end AI server models, which reach approximately 13,475 yuan. These systemic pressures have forced manufacturers to alter their operational priorities. Daeduck Electronics, a supplier to Samsung Electronics, SK Hynix, and AMD, has initiated price renegotiations with its clientele. A senior executive at the firm reported a shift in focus toward supplier management, noting that lead times for chemical materials such as epoxy resin have extended from three weeks to 15 weeks. This situation occurs while the industry is simultaneously managing the financial impact of rising memory chip costs.

Conclusion

The convergence of geopolitical conflict and high demand for AI infrastructure has created a critical shortage of raw materials, leading to substantial price increases and extended lead times for the global PCB industry.

Vocabulary Learning

anticipation (n.)

expectation / the act of looking forward to something預期

Example:Cloud service providers are prepared to absorb these cost increases due to the anticipation that demand will continue to exceed supply.

constrained (adj.)

restricted / limited in scope or ability受限制

Example:The global availability of the resin has been severely constrained by the production halt.

disruption (n.)

interruption / a sudden halt in activity中斷

Example:The geopolitical disruptions in the Middle East have led to widespread supply chain instability.

expenditure (n.)

spending / the amount of money used for a purpose支出

Example:Copper constitutes roughly 60 percent of the total raw material expenditure in PCB production.

renegotiations (n.)

revised negotiations / the process of negotiating again重新談判

Example:Daeduck Electronics has initiated price renegotiations with its clientele.

Sentence Learning

This action necessitated a cessation of production for high‑purity polyphenylene ether (PPE) resin, a fundamental component in the fabrication of PCB laminates.

Reduced Relative Clause: The phrase "a fundamental component in the fabrication of PCB laminates" modifies "PPE resin" by providing additional information without a relative pronoun, a classic example of a reduced relative clause.簡化關係子句：短語「在 PCB 膠層製造中的基本組成部分」修飾「PPE 玻璃纖維聚酚醚」，省略關係代詞，屬於簡化關係子句。

This situation occurs while the industry is simultaneously managing the financial impact of rising memory chip costs.

Adverbial Clause of Time: The clause "while the industry is simultaneously managing the financial impact of rising memory chip costs" functions as an adverbial clause indicating that the two actions happen at the same time.時間狀語從句：從句「while the industry is simultaneously managing the financial impact of rising memory chip costs」作為時間狀語，表明兩個動作同時發生。

The company has noted a significant price variance between standard multi‑layer PCBs, priced at approximately 1,394 yuan per square metre, and high‑end AI server models, which reach approximately 13,475 yuan.

Nominalization: The noun phrase "price variance" turns the verb "vary" into a noun, allowing the sentence to discuss the concept abstractly rather than as an action.名詞化：名詞短語「price variance」將動詞「vary」名詞化，允許句子以抽象概念而非動作來討論。

SABIC, which maintains an approximate 70 percent share of the global high‑purity PPE market, has been unable to restart operations at the Jubail facility.

Passive Voice: The construction "has been unable to restart operations" uses the passive voice to emphasize the state of inability rather than the agent performing the action.被動語態：結構「has been unable to restart operations」使用被動語態，強調無法恢復運營的狀態，而非執行者。

Analysis suggests that cloud service providers are prepared to absorb these cost increases due to the anticipation that demand will continue to exceed supply capacity in the coming years.

Noun Clause: The clause "that demand will continue to exceed supply capacity in the coming years" functions as the object of the preposition "due to", providing explanatory content.名詞子句：子句「that demand will continue to exceed supply capacity in the coming years」作為介詞「due to」的賓語，提供說明性內容。