Computer Parts Cost More Money
Computer Parts Cost More Money
Introduction
Wars in the Middle East make it hard to get materials. Now, the boards inside electronics cost more money.
Main Body
Iran attacked a factory in Saudi Arabia in April. This factory makes a special plastic for computer boards. Now, there is not enough plastic for the world. Many people want AI servers. These servers need many boards. Because of this, the price of boards went up 40 percent in one month. Copper and glass are also expensive. Copper is a big part of the cost. High-end boards for AI are now very expensive. Companies must wait longer for materials. Some materials take 15 weeks to arrive. Companies are now asking for more money from their customers.
Conclusion
Wars and high demand for AI mean there are not enough materials. This makes computer boards expensive and slow to get.
Vocabulary Learning
Sentence Learning
How Middle East Conflict Affects Global Printed Circuit Board Supply and Prices
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
Sentence Learning
Impact of Middle East Conflict on Global Printed Circuit Board Supply Chains and Pricing
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.