The Iran war escalated in late February 2026 and has now reached the printed circuit board supply chain — creating severe disruptions for electronics manufacturers worldwide. For businesses relying on PCBs — from consumer electronics to AI servers — the impact is immediate and growing. Here’s what you need to know.
How the Conflict Is Disrupting PCB Supply
The disruption centers on two primary fronts: direct attacks on petrochemical infrastructure and the effective closure of the Strait of Hormuz.
PPE Resin Shortage. In early April 2026, Saudi Arabia’s Jubail petrochemical complex was attacked, which is operated by SABIC, which supplies approximately 70% of the world’s high‑purity polyphenylene ether (PPE) resin — the critical base material used to manufacture PCB laminates. Production has not resumed, and there are no alternative suppliers capable of filling a 70% supply gap.
PCB Prices Are Soaring. PCB prices were already rising due to AI server demand. But in April alone, prices surged as much as 40% compared to March, according to Goldman Sachs analysts. Cloud service providers are accepting further increases, expecting demand to outstrip supply for years.
Logistics Collapse. The Strait of Hormuz, normally handling about 20% of global oil and gas shipments, remains effectively closed. Gulf shipping is severely disrupted, compressing the logistics routes that connect Middle Eastern chemical producers to Asian electronics manufacturers.
Secondary Material Pressure. Copper accounts for approximately 60% of total raw material costs in PCB manufacturing. Copper foil prices have surged as much as 30% so far this year, with the rally accelerating in March. Glass fiber shortages are adding further pressure.
How This Affects China as a Global PCB Hub
China remains the world’s largest PCB production base, projected to capture 37.6% of the global market in 2025. However, Chinese manufacturers are not immune:
– Key material imports (resins, copper foil, glass fiber) face rising costs and extended lead times.
– Shipping routes from the Gulf to Chinese ports are disrupted, elevating freight and insurance costs.
– Major Chinese PCB suppliers, including Nvidia’s core supplier Victory Giant Technology, have warned that the conflict could push up prices for resin and copper.
At the same time, the disruption underscores the value of geographically diversified PCB sourcing. Many manufacturers are adopting “China Plus One” strategies, expanding into Southeast Asia — particularly Thailand, Vietnam, and Malaysia — to build supply chain resilience.
What PCB Buyers Can Do Now
If your business relies on PCB imports, consider these steps:
- Communicate with suppliers early. Lead times for chemical materials such as epoxy resin have stretched from three weeks to fifteen. Adjust your procurement schedules accordingly.
- Lock in pricing. With copper prices rising and resin supplies uncertain, negotiate fixed‑price contracts where possible.
- Monitor the situation closely. Halting the Strait of Hormuz and unresolved ceasefire negotiations suggest disruptions may persist for months.
For PCBA manufacturers handling overseas orders, staying ahead of these supply shocks is critical. Transparent communication with your customers — and a flexible, diversified sourcing strategy — will set you apart as a reliable partner in uncertain times.
Need to discuss how the Iran war is impacting your PCBA orders? Contact us to explore sourcing alternatives and capacity planning.
