The Iran War’s Impact on the AI Supply Chain
The Iran war is significantly affecting the global AI supply chain, particularly in the form of disrupted circuit board manufacturing.
Circuit Board Price Surge
- In April 2026, circuit board (PCB) prices surged by 40% compared to March, according to Goldman Sachs analysts.
- This abrupt increase is attributed to the Iranian strikes on the SABIC petrochemical complex in Saudi Arabia’s Jubail Industrial City.
Disruption to Global PPE Supply
- The strike halted production of high-purity polyphenylene ether (PPE) resin, which accounts for 70% of global supply and is a crucial component in PCB manufacturing.
- South Korean supplier Daeduck Electronics reported extended wait times for epoxy resin, rising from three weeks to fifteen.
Compounding Supply Pressures
- Industry sources indicate that the conflict has exacerbated existing supply pressures in the PCB industry.
- The disruption to PPE availability directly impacts PCB prices due to the unavailability of readily substitutable alternatives.
Copper as a Secondary Pressure Point
- Copper, which constitutes 60% of total raw material costs in PCB manufacturing, is another area of concern.
- Victory Giant Technology, a Chinese PCB supplier, warned that the conflict could lead to price increases for copper and other materials due to Gulf shipping disruptions.
Operational Impact
- A senior executive at Daeduck Electronics expressed worries about meeting customer demands, as their priority shifts towards securing supplies with extended lead times.