Printed circuit board (PCB) prices have surged after the Middle East conflict disrupted the supply of raw materials used in PCBs, adding cost pressure on electronics makers and import-dependent markets, including Pakistan.
Industry sources and executives told Reuters that the disruption has affected printed circuit boards used in smartphones, computers and AI servers, with manufacturers already facing higher memory chip costs.
Iran struck Saudi Arabia’s Jubail petrochemical complex in early April, halting production of high-purity polyphenylene ether resin used in PCB laminates. SABIC accounts for about 70% of the global high-purity PPE supply.
Goldman Sachs analysts said PCB prices rose as much as 40% in April from March levels, while separate market coverage said PCB and copper-clad laminate suppliers had gained pricing power because of AI demand and supply shortages.
Daeduck Electronics, a South Korean PCB maker supplying Samsung Electronics, SK Hynix and AMD, has opened talks with customers about price increases, a senior executive told Reuters. The executive said lead times for chemical materials, such as epoxy resin, had stretched to 15 weeks from 3 weeks.
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The shortage also covers glass fibre and copper foil. Copper foil prices have risen as much as 30% this year, while copper accounts for about 60% of raw material costs in PCB manufacturing, Victory Giant Technology said.
Victory Giant Technology, a major Chinese PCB supplier for Nvidia, warned that the conflict could push up resin and copper prices. The company said multi-layer PCBs cost about 1,394 yuan, or $204, per square metre, while high-end AI server boards cost about 13,475 yuan.
Prismark projected the global PCB industry would grow 12.5% to $95.8 billion in 2026, as AI servers continue to drive demand for higher-end boards.
