PCB sector sees collective surge: Iran war disrupts supply chain + AI demand triggers price hike wave + strong growth across Q1 earnings

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The combined forces of the Iran war, AI computing power arms race, and raw material shortages are pushing the printed circuit board (PCB) industry into a new boom cycle.

On April 27, the A-share PCB (Printed Circuit Board—the backbone of electronic components) sector soared. Shenzhen Sunway surged to a new historical high, while Jingwang Electronics, Fangbang Shares, Shandong Fiberglass, and Tianjin Prin hit the daily limit. Foster and Tongguan Copper Foil both rose by more than 8%.

The logic driving this wave of market activity is clear: Iran's attack on Saudi petrochemical facilities has disrupted key PCB raw material supplies. Goldman Sachs estimates PCB prices jumped 40% month-on-month in April. Meanwhile, demand for AI servers is booming, and domestic PCB industry chain companies are seeing strong performance in their Q1 reports, with several companies reporting year-on-year net profit growth of over 50%, or even doubling.

Supply shocks and booming demand are resonating together. Institutions predict that advanced AI PCB production capacity will nearly double this year, leading manufacturers will release new capacities quarter by quarter, and the boom is expected to last until the end of the year or even next year.

The Iran war disrupts key raw material supply, PCB prices soar by 40% in a single month

The trigger for this round of PCB price increases is the direct impact of Middle East conflicts on the global supply chain.

In early April, Iran attacked Saudi Arabia’s Jubail petrochemical industrial zone, forcing the shutdown of high-purity polyphenylene ether (PPE) resin production. PPE resin is a core base material for PCB copper-clad laminate (CCL), and Saudi chemical giant SABIC accounts for about 70% of global high-purity PPE supply. According to insiders, SABIC still cannot resume production, and global supply of this material has tightened severely. At the same time, the Iran war has caused serious disruptions to Persian Gulf shipping, further complicating the circulation of raw materials.

Supply shocks, combined with continued demand from AI servers, have pushed PCB prices sharply higher. Goldman Sachs analysts noted in a recent report that in April alone, PCB prices climbed 40% compared to March. Goldman Sachs also pointed out that cloud service providers are willing to accept further price increases, as they expect demand to outpace supply for years to come.

The raw material shortage is not limited to PPE resin. According to insiders, glass fiber and copper foil are also in tight supply, with copper foil prices up by as much as 30% this year and the rise accelerating in March. Copper is the most important raw material in PCB manufacturing. Victory Giant Technology, a key Chinese PCB supplier to Nvidia, disclosed that copper accounts for about 60% of total PCB raw material costs. Earlier this month, the company warned that the Middle East conflict could further push up prices for key materials like resin and copper.

Upstream material suppliers follow with price hikes, the transmission chain is fully activated

Raw material price increases are being passed down the supply chain, with advanced PCB copper-clad laminate (CCL) suppliers taking the lead.

According to ICHUNT data, suppliers like Taiguang Electric, Taiyo, and Lianmao have all started communicating price increases for advanced CCL with their customers. Taiyo raised CCL prices starting April 25, with some products rising by 20% to 40%. Taiguang Electric and Lianmao announced new price hikes for advanced materials in the second quarter, both by 10%, mainly targeting high-end applications like AI servers and switches.

On the PCB manufacturing side, Korean PCB manufacturer Daeduck Electronics has begun price negotiations with customers, including Samsung Electronics, SK Hynix, and AMD. An unnamed executive told Reuters that their focus has shifted from customer visits to supplier contacts, as the wait time for chemical materials like epoxy resin has increased from three weeks to fifteen weeks.

In terms of product prices, multilayer PCBs currently sell for about 1,394 yuan per square meter, while high-end models for AI servers reach about 13,475 yuan per square meter—a nearly tenfold difference between high-end and ordinary products, highlighting the strong pulling effect of AI applications on advanced PCB demand.

Q1 reports show strong growth, AI demand boom spreads upstream

Aside from supply shocks, strong demand is also an important driver of this round's market. Domestic PCB industry chain companies have recently released Q1 2026 results, showing collective surges.

Specifically:

Shudian Co. expects Q1 net profit attributable to parent shareholders of 1.18 billion to 1.26 billion yuan, up 54.76% to 65.25% year-on-year, benefiting from structural demand for PCBs in high-speed computing servers and new AI scenarios.

Han's CNC reported Q1 net profit attributable to parent shareholders of 323 million yuan, up 176.53% year-on-year, mainly due to strong demand for dedicated PCB processing equipment in the AI server market.

Zhong Tung High-tech expects Q1 net profit attributable to parent shareholders of 900 to 950 million yuan, up 256% to 276% year-on-year, benefiting from robust demand in the PCB cutting tools market.

Several interviewed industry executives said, judging from Q1 orders, prices, and capacity changes, this boom could persist until the end of the year or even next year.

Institutions are optimistic about structural opportunities, advanced capacity nearly doubles this year

Institutional research is also optimistic about the industry outlook.

First Capital Securities stated in its report that, under the wave of AI computing power, the construction of computing infrastructure is accelerating, and the PCB industry is facing significant structural growth opportunities. AI servers, high-speed switches, and other core computing devices continue to drive demand for high-frequency, high-speed, multi-layered, and high-end HDI PCB products. Coupled with the fact that each AI device contains much higher PCB value than traditional servers, the industry has ample growth momentum.

First Capital Securities also emphasized that the PCB industry has significant customer certification barriers. Certification cycles for leading downstream customers are long and standards are strict. Once approved, strong collaborative ties are formed. Against this backdrop, companies deeply cooperating with global leading AI clients and actively deploying high-end capacity domestically and abroad will fully benefit from industry gains.

On the supply side, institutions believe that leading PCB manufacturers will release new production capacity quarter by quarter this year, and the industry’s advanced AI PCB capacity will nearly double. Market research institution Prismark predicts that the global PCB industry will grow 12.5% in 2026, reaching $95.8 billion.

It is worth noting that the impact of geopolitical shocks on the supply chain usually takes several quarters to gradually digest, not just several weeks. This means that raw material shortages and price pressure will not be relieved quickly in the short term, and the price increase logic in the PCB industry chain will continue to play out.

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