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Iran war disrupts the circuit board supply chain, raises costs for tech firms

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PCB prices have been climbing since late last year, driven by a growing appetite for AI servers [File] | Photo Credit: REUTERS

The conflict in the Middle East has disrupted supplies of ​crucial raw materials and pushed up prices of the printed circuit boards (PCB) ⁠used in almost all electronic devices, from smartphones and computers to AI servers, industry sources and executives said.

The disruption is a fresh blow to electronics manufacturers which are already grappling with soaring memory chip ‌costs and highlights the broadening impact of the Iran war that has wreaked havoc on supply chains, plastics, and oil supplies. Iran struck Saudi Arabia’s Jubail ‌petrochemical complex in early April, forcing a halt in production of high-purity polyphenylene ether (PPE) ‌resin — ⁠a critical base material used to manufacture PCB laminates.

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