West Asia Conflict and AI Boom Spark Printed Circuit Board Shortage

A shortage of printed circuit boards (PCBs) in the electronics industry has been triggered by the West Asia conflict and a surge in AI server demand. ELCINA, an electronic components makers body, stated that PCB manufacturing relies heavily on raw materials such as Copper Clad Laminate Chemicals, which have high import dependence.

According to Rajoo Goel, Secretary General of ELCINA, the cost of key raw materials has risen significantly over the past 8-9 months. Low-bromine epoxy resin has increased by about 70%, JUSHI 7628 glass cloth has doubled in price, and copper foil has seen a 30% rise.

Syrma SGS Technology Managing Director Jasbir Singh Gujral attributed the PCB shortage to the recent strike of Iran on facilities in Saudi Arabia. He stated that one facility was controlling 80% of the supply of a specialty chemical used in PCB manufacturing, which is now in short supply.