Middle East conflict drives PCB prices up 40%, disrupting electronics supply chains
The war in the Middle East has disrupted supplies of raw materials used in PCBs and pushed prices sharply higher, compounding cost pressures that were already building across the electronics industry, according to industry sources and executives cited by Reuters.
PCB prices surged as much as 40% in April alone compared to March, Goldman Sachs analysts said in a note cited by Reuters. The sharp rise reflects both an accelerating appetite for AI server infrastructure and material shortages linked to the regional conflict. Cloud service providers are reportedly willing to absorb further increases, expecting demand to outpace supply for years to come.
The disruption has hit supply chains for several key materials. Epoxy resin lead times have stretched from three weeks to 15 weeks, a senior executive at South Korean PCB manufacturer Daeduck Electronics told Reuters. The company, whose customers include Samsung, SK Hynix and AMD, has begun discussions with customers over price increases. The executive, who declined to be named, said their priorities had shifted from customer meetings to securing supplier relationships.
Glass fibre and copper foil are also under pressure, according to a source cited by Reuters. Copper foil prices have risen as much as 30% so far this year, with the rally accelerating in March. Copper accounts for approximately 60% of total raw material costs in PCB manufacturing, according to Victory Giant Technology, a Chinese PCB supplier for Nvidia. The company warned earlier this month that the Middle East conflict could push up prices for resin and copper further.
PCB prices have been climbing since late last year, driven by AI server demand before the Middle East disruptions added further pressure. The global PCB market is projected to grow 12.5% to USD 95.8 billion in 2026, according to a report from Prismark cited by Reuters.
The disruption is a further complication for electronics manufacturers already contending with surging memory chip costs – both pressures tracing back to the same AI infrastructure buildout that is reshaping demand.
