Iran War: PCB Manufacturing Faces Supply Shortages
The US and Israel's attack on Iran has seen shipping traffic in the Strait of Hormuz grind to a near halt and regional energy infrastructure come under target.
The crisis is not limited to energy. It has affected helium needed for semiconductor manufacturing, aluminium needed for automotive manufacturing and a large variety of industries globally who have faced higher raw materials costs.
Printed circuit boards (PCBs) are facing cost rises due to disrupted supplies of critical minerals and even resins.
PCBs are used in the manufacturing of almost all electronic devices, including smartphones and computers.
PPE resin shortages
Electronics manufacturers are already facing soaring memory costs, with Gartner projecting that these costs will drive worldwide PC shipments into declining 10.4% and smartphones to decline 8.4% in 2026.
On 7 April, Iran's Revolutionary Guards said a strike was conducted on Saudi Arabia's Jubail petrochemical complex.
This halted production of PPE (polyphenylene ether) resin which accounts for a significant amount of global output.
PPE resin is an excellent insulator that maintains its dimensions under heat stress. It is often used by electronics manufacturers in high-voltage components and is a critical base material used in manufacturing PCBs.
One source who spoke to Reuters said that SABIC has been unable to resume output, severely tightening the availability of the material worldwide.
In April, PCB prices surged as much as 40% from March, Goldman Sachs analysts said in a recent note.
PCB demand
The demand growing in electronics for PCBs is largely driven by AI server infrastructure.
Demand has been accelerating sharply as manufacturers scramble to secure raw material supplies and soften the impact of skyrocketing costs.
PCBs are also used in the automotive industry in autonomous vehicles and driver assistance systems.
Supply chain issues
Resin, copper and other materials all face rising prices due to limited supply.
The conflict in Iran has created large scale supply chain disruptions across a variety of industries, including semiconductor manufacturing and cars.
The Financial Times reported that a shortage of Qatari gas has knocked out about 10% to 15% of global helium supply, which is essential for the manufacturing of semiconductors needed for the build-out of AI data centres.
Semiconductor manufacturers Samsung Electronics and SK Hynix, which supply roughly two-thirds of the world's memory chips, have four to six months worth of helium inventory, a source told Reuters in early April 2026.
According to The Federal Reserve’s “Beige Book” some US manufacturers reported uncertainty surrounding tariffs and the conflict in the Middle East as their firm's greatest challenge, with many US manufacturers raising concerns about the shortage of raw materials.
