Published on April 27, 2026
Before April, the AI industry benefitted from a stable supply of resin materials used in manufacturing printed circuit boards (PCBs). Essential suppliers like SABIC in Jubail provided reliable access to these resources, fueling growth in an already booming tech sector.
In early April, Iran’s military action targeting SABIC’s petrochemical complex drastically altered this landscape. Production was halted, triggering a sharp price increase for epoxy resins—reportedly up 40% in just a month, according to Goldman Sachs analysts.
The ramifications were swift. Producers like a South Korean supplier to giants Samsung and AMD reported that wait times for epoxy resin skyrocketed from three weeks to a staggering fifteen. This disruption has raised alarms about potential delays in AI hardware production and broader tech development.
The ongoing conflict demonstrates the fragility of global supply chains. As tech companies scramble to secure alternative sources, the impact on production timelines and costs could reshape the competitive landscape within the AI industry. Increased expenses may lead to higher prices for end consumers, creating a ripple effect across the market.
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