Every smartphone, laptop, AI server, and computer on the planet contains a printed circuit board. And right now, the Iran war impact on tech industry is making those boards dramatically more expensive and harder to get.
The Iran war supply chain disruption has reached deep into the electronics sector, pushing PCB prices increase figures up by as much as 40% in April alone. The tech firms rising costs are accelerating by the week, and the worst may still be ahead.
What Triggered the PCB Crisis
The direct trigger for the Iran war impact on tech industry was Iran’s retaliatory strike on Saudi Arabia’s Jubail petrochemical complex in early April. The attack forced a halt in production of high-purity polyphenylene ether known as PPE resin a critical base material used to manufacture the laminates that form the foundation of every printed circuit board. SABIC, the company operating in the Jubail complex, accounts for approximately 70% of the world’s entire supply of high-purity PPE resin. With SABIC unable to resume output, global availability of this material tightened severely almost overnight, triggering the broader Iran war supply chain disruption that is now rippling through every corner of the electronics industry.
PCB Prices Surge 40% in a Single Month
The PCB prices increase has been staggering in its speed and scale. In April alone, PCB prices surged as much as 40% compared to March, according to Goldman Sachs analysts. The Iran war supply chain disruption drove waiting times for chemical materials such as epoxy resin from three weeks to 15 weeks a fivefold increase that has thrown production planning into chaos across the industry. A senior executive at Daeduck Electronics a South Korean PCB maker whose customers include Samsung, SK Hynix, and AMD said his priority has fundamentally shifted. “My priority has now changed from meeting customers to suppliers,” he told reporters, reflecting how completely the Iran war impact on tech industry has inverted normal business operations.
Copper Foil and Glass Fiber More Shortages
The PPE resin shortage is not the only driver of the PCB prices increase. Copper foil which accounts for approximately 60% of total raw material costs in PCB manufacturing has surged as much as 30% since the start of the year, with the rally accelerating sharply in March. Glass fiber, another essential PCB component, is also in short supply following Iran war supply chain disruption effects on Gulf-based industrial production and shipping. Victory Giant Technology, a major Chinese PCB supplier for Nvidia, has warned that the combined pressure from resin, copper, and glass fiber shortages is creating a multi-front cost crisis that no single supply chain adjustment can resolve. Multi-layer PCBs now cost around $204 per square metre, while higher-end AI server boards cost nearly twenty times that figure.
AI Server Demand Making It Worse
The tech firms rising costs crisis is compounded by the fact that it is happening at the worst possible moment for AI infrastructure investment. PCB prices had already been rising since late 2025, driven by surging global demand for AI servers and that demand has not slowed. Cloud service providers told industry sources they are willing to absorb further PCB prices increase figures because they expect AI server demand to outstrip supply for years to come. The global PCB industry was already projected to grow 12.5% to reach $95.8 billion in 2026 before the war began. The Iran war impact on tech industry has now turned a supply-demand imbalance into a full-scale supply crisis with both the raw material shortage and record demand pulling prices in the same direction simultaneously.
Gulf Shipping Disruption Compounds the Problem
The Iran war supply chain disruption is not only about raw materials it is also about getting finished components to where they need to go. Shipping in and out of the Gulf has been severely disrupted since the Strait of Hormuz effectively closed in late February. Manufacturers across Asia are scrambling to secure raw material supplies through alternative routes, but longer shipping times, higher freight costs, and war-risk insurance premiums are adding further layers of cost to an already stressed supply chain. The tech firms rising costs picture includes not just higher input prices but also elevated logistics expenses that are eating into margins at every stage of the electronics production process.
Which Tech Companies Are Feeling It Most
The Iran war impact on tech industry is being felt most sharply by companies with the highest PCB intensity in their products. Samsung, SK Hynix, and AMD all customers of Daeduck Electronics — have begun receiving price increase notices from suppliers. Nvidia’s supply chain partners in China have flagged the conflict as a direct cost risk to AI server production. Consumer electronics manufacturers producing smartphones, tablets, and laptops are also facing pressure, as the same PCB laminate materials used in AI servers go into consumer devices. The broader tech firms rising costs impact is expected to feed through into consumer prices for electronics by Q3 2026 if the raw material shortage is not resolved.
Which Sectors Are Benefiting From the Iran War
While the Iran war supply chain disruption is hammering the electronics sector, other industries are seeing substantial gains. Defense contractors have been the biggest winners Northrop Grumman, RTX, General Dynamics, and L3Harris Technologies all surged when the war began, with the Spade Defense Index returning more than 70% since early 2025. Energy companies are benefiting directly from elevated oil prices, with Brent crude still trading above $107 per barrel. Gold and silver mining companies are gaining from safe-haven demand. Cybersecurity firms are seeing expanded government contracts following Iranian drone strikes on AWS data centers in the UAE and Bahrain. Defense technology companies working on autonomous systems, electronic warfare, and AI-driven threat analysis are experiencing record pipeline activity and venture investment.
Frequently Asked Questions
Will the Iran war affect tech stocks?
The Iran war impact on tech industry is creating a significant split in tech stocks. Companies with heavy PCB and semiconductor supply chain exposure including consumer electronics manufacturers and AI infrastructure companies are facing tech firms rising costs and supply shortages that are pressuring margins and valuations. Growth tech stocks overall have lagged the broader market since the war began. However, defense-adjacent tech companies including Palantir, AeroVironment, and cybersecurity firms are outperforming, benefiting from record military spending and expanded government contracts.
Will the Iran war affect electronics?
Yes significantly. The Iran war supply chain disruption has directly hit the printed circuit board industry, which is central to every electronic device. The destruction of SABIC’s PPE resin output at the Jubail complex removed approximately 70% of the world’s supply of a critical PCB laminate material. Combined with copper foil and glass fiber shortages, the PCB prices increase of up to 40% in April alone means higher production costs for every category of electronics from smartphones and laptops to AI servers. Consumers should expect price increases on electronic devices in the second half of 2026 if the Iran war supply chain disruption continues.
What sectors will benefit from the Iran war?
Three sectors are clear beneficiaries of the current conflict. First, energy oil producers and oilfield services companies are benefiting directly from Brent crude above $107 per barrel and the Iran war supply chain disruption of Gulf oil flows. Second, defense US and European defense contractors have seen share prices surge 70% or more since the war began, with the Trump administration requesting $200 billion in emergency military spending and planning to raise the 2027 defense budget to $1.5 trillion. Third, commodities gold, silver, and industrial metals are all rising on inflation fears, safe-haven demand, and supply chain disruption driven by the Iran war impact on tech industry and broader geopolitical uncertainty.
