The Iran war is hitting the AI supply chain where it hurts (thenextweb.com)

The recent conflict involving Iran has significantly impacted the global AI supply chain, particularly affecting the production of printed circuit boards (PCBs). An Iranian strike on SABIC’s Jubail petrochemical complex in early April halted the production of high-purity polyphenylene ether (PPE) resin, which is crucial for PCB laminates. This disruption has led to a staggering 40% increase in PCB prices in just one month, as SABIC accounts for about 70% of the global PPE supply, leaving the market struggling to find alternatives. The ongoing war has further exacerbated an already tight supply chain, driven by heightened demand for AI hardware due to increased investments from cloud service providers. Wait times for essential materials, like epoxy resin, have escalated dramatically from three weeks to 15 weeks, indicating a structural disruption in production timelines. With shipping routes in the Gulf severely affected and copper prices also on the rise—due to its significant role in PCB manufacturing—the AI and tech industries are bracing for prolonged procurement challenges. As the market adjusts to these pressures, the projected growth of the PCB industry underscores the urgency for stakeholders to navigate these geopolitical risks amid booming demand for AI infrastructure.