A major disruption in the global supply of resin, a critical component for printed circuit boards (PCBs), is threatening to drive up prices across a wide range of electronics, including smartphones, laptops, wearables, gaming consoles, routers, and AI servers [1]. The disruption stems from the shutdown of the Jubail petrochemical and industrial complex in Saudi Arabia, which was struck by Iranian missiles on April 6 and April 7, following earlier closures at the end of March due to untenable transit conditions through the Strait of Hormuz amid ongoing conflict [1]. The operational status of the complex remains uncertain, with supply chain experts warning that the restart process could be lengthy [1].
Dow CEO Jim Fittering, whose company has a joint venture with Saudi Aramco at Jubail, stated on April 23 that they are guiding to a '275 day-plus' process for reopening the Strait of Hormuz and normalizing supply chains. He emphasized that while repairs at the complex are underway and not expected to extend beyond this timeframe, the broader logistics situation is the main constraint [1].
The shortage of resin has already begun to impact the market. According to April producer price index data, plastic resins and materials contributed to a 9.4% annual increase in processed goods prices, marking the steepest rise in over three years [1]. Printed circuit board prices surged by up to 40 percent from March to April, with Chinese PCB giant Victory Giant warning that the Middle East conflict could further push up prices of key ingredients such as copper and resin [1].
The U.S. now produces only 4% of the world's PCBs, down from 30% in 2000, making the global electronics supply chain highly dependent on a few resin sources, regardless of where PCBs are manufactured [1]. Supply chain experts predict that if the resin stoppage continues into autumn, within the 275-day window, consumers should expect to see higher prices for electronics by the fall [1].
CONCLUSION
The ongoing resin shortage caused by the Iran-Saudi conflict and the shutdown of the Jubail complex is already driving up costs for electronics manufacturers, with significant price increases for PCBs and processed goods. If the supply chain disruption persists, consumers can expect higher electronics prices by the fall, signaling a high-impact event for the global electronics market.