The war with Iran has started to impact a little-visible but essential part of the tech industry: PCBs, printed circuit boards on which chips, memory, connectors, capacitors, and many other components of modern electronic devices are mounted. They are inside graphics cards, motherboards, smartphones, power supplies, routers, AI servers, or industrial equipment. When prices rise or supplies become scarce, pressure is distributed throughout the supply chain.
The problem didn’t arrive during a calm period. The demand for servers for artificial intelligence was already straining the component market, from high-performance memory to power supplies, networking, and cooling systems. Now, according to Reuters, the disruption in the supply of critical raw materials for manufacturing PCBs has caused price increases of up to 40% in April compared to March, based on analysts from Goldman Sachs cited by the agency.
An attack in Jubail hits a hard-to-replace material
The immediate source of tension is the Jubail petrochemical complex in Saudi Arabia. Reuters notes that Iran attacked these facilities in early April, forcing a halt in the production of high-purity PPE resin, a material used as a base in laminates for printed circuit boards. SABIC, which operates in Jubail, is estimated to supply around 70% of the global supply of this high-purity resin, according to a Reuters source.
PPE resin is not just any material in advanced electronics. It’s used for its insulating properties and heat stability—two essential qualities for boards that must handle high frequencies, dense components, and high electrical consumption. While already important in conventional equipment, in AI servers, high-speed communications, and high-end hardware, its role becomes even more critical.
The scarcity isn’t limited to resin. The rise in PCB prices has also been worsened by issues with other materials, such as fiberglass and copper sheets. Reuters reports that copper prices for PCBs have increased by up to 30% this year, with a sharper rise since March. Victory Giant Technology, a Chinese PCB supplier linked to NVIDIA, estimates that copper accounts for about 60% of the total raw material cost in manufacturing these boards.
This combination is particularly problematic for manufacturers: a critical raw material halted, other inputs becoming more expensive, and Gulf maritime routes affected by the conflict. The electronics supply chain is typically very efficient when everything functions smoothly, but it can also become fragile when a highly specialized material depends on only a few capable suppliers.
Why AI feels the impact first
Although PCBs are present in nearly all electronic devices, the most visible impact is likely to be felt first in AI servers. Not because a laptop or home graphics card are unaffected, but because PCBs designed for AI are more complex, more expensive, and require more materials.
The data cited by Reuters highlights the difference. A conventional multi-layer PCB can cost around 1,394 yuan per square meter (about $204), while advanced models for AI servers can reach approximately 13,475 yuan per square meter (about $1,970), according to Victory Giant Technology. This gap explains why raw material increases hit high-performance hardware much more severely.
In an AI server, it’s not enough to just install powerful chips. You need to move large amounts of energy, connect accelerators, memory, network, and storage with low latency, and maintain thermal and electrical stability. Advanced PCBs are integral to this architecture. When their costs increase, the final system price can absorb the blow better than consumer devices, but the total cost for large buyers rises.
Cloud providers appear willing to accept further price increases, according to Reuters, because they expect demand to remain above supply for the coming years. That willingness to pay more could push the problem into other sectors with lower margins, such as consumer electronics, automotive, industrial equipment, or mid-sized manufacturers lacking the purchasing power of big cloud providers.
The PCB industry was already growing due to demand from AI, electric vehicles, communications, and data centers. Prismark projects that the global PCB market will reach $95.8 billion by 2026, growing at around 12.5%, as reported by Reuters.
More pressure on an already strained tech supply chain
The PCB crisis reminds us that AI does not depend solely on GPUs, models, and data centers. It also requires chemical materials, copper, glass, laminates, specialized factories, maritime transport, and capable suppliers. An interruption in a seemingly secondary layer can quickly translate into increased server costs, lead times, and capacity planning challenges.
Daeduck Electronics, a South Korean PCB manufacturer serving clients like Samsung Electronics, SK Hynix, and AMD, has already begun discussing price hikes with customers, according to a company executive interviewed by Reuters. The same article notes that wait times for chemical materials like epoxy resin have extended from three to fifteen weeks in some cases.
To consumers, the effects may not be immediately visible. Brands typically work with inventories, contracts, and bulk purchases in advance. But if the tension persists, price increases can eventually show up in motherboards, graphics cards, laptops, smartphones, or networking equipment. Delays may also occur if manufacturers prioritize higher-margin lines or strategic clients.
For data centers, the impact is more direct. Companies deploying AI infrastructure compete for GPUs, HBM memory, high-speed networks, energy, cooling, and now PCB materials. Each layer adds pressure on an investment already totaling hundreds of billions of dollars worldwide.
This situation also carries geopolitical implications. For years, the tech sovereignty debate has focused on semiconductors, advanced lithography, public clouds, and chip manufacturing capacity. But electronics depend on a broader network of materials and processes. A resin produced at a petrochemical complex, a maritime route, or a copper supplier can have a tangible effect on the availability of servers and devices.
The market may adapt through alternative suppliers, redesigns, safety inventories, and contract renegotiations. However, such solutions often aren’t immediate when dealing with high-purity materials and advanced PCBs. Meanwhile, the tech industry enters a phase where securing supply can become just as critical as negotiating price.
The conflict with Iran has not created the tension in PCBs by itself; it has accelerated an existing situation during a period of high demand for AI infrastructure, rising costs, and re-evaluation of forecasts by manufacturers and clients. The result is yet another sign that the AI boom is not only making chips more expensive but also putting pressure on much more discreet components without which no system runs.
Frequently Asked Questions
What is a PCB?
A PCB, or printed circuit board, is the physical base where electronic components like chips, memory, capacitors, and connectors are mounted and connected.
Why does the war with Iran affect PCBs?
Because the conflict has disrupted the supply of critical raw materials, including high-purity PPE resin used in PCB laminates.
How much have PCB prices increased?
According to Goldman Sachs analysts cited by Reuters, PCB prices increased by up to 40% in April compared to March.
Which products could be affected?
AI servers, graphics cards, motherboards, smartphones, networking equipment, automobiles, industrial electronics, and nearly any device that uses printed circuit boards.