A critical global shortage of resin, a key component in printed circuit boards (PCBs) used across all modern electronics, is set to drive up prices for consumers by this fall. The disruption stems from the Jubail petrochemical complex in Saudi Arabia being offline due to geopolitical conflict and logistical challenges in the Strait of Hormuz, with no immediate alternative suppliers available. Experts warn that from smartphones and laptops to gaming consoles and AI servers, consumers should prepare for higher costs and potential supply issues.
Anyone who’s ever touched an evergreen tree knows the sticky residue of natural resin. Humans have long mimicked nature, creating synthetic resins from petrochemicals. These synthetic versions harden into a durable, heat-resistant material indispensable across countless industries, from adhesives and coatings to plastics and, critically, electronics. Resin forms a vital component in the manufacturing of printed circuit boards (PCBs), the complex 'nervous system' found in every modern device, from your smartphone to your car.
A critical global supply of this essential resin was severely disrupted when the Jubail petrochemical and industrial complex in Saudi Arabia was reportedly struck by Iranian missiles on April 6 and 7. This attack delivered a final blow following an earlier shutdown in late March, prompted by the escalating geopolitical conflict that made transit through the Strait of Hormuz untenable. Today, the massive complex remains offline, sending shockwaves through the global tech supply chain.
Public information regarding the exact operational status of the Jubail complex is scarce. However, Dow CEO Jim Fittering, whose company has a joint venture with Saudi Aramco at Jubail, indicated during Dow’s April 23 earnings call that the restart process for the Strait of Hormuz and the broader supply chain normalization could take "275 day-plus." Fittering suggested that actual repairs at the complex might be less of a hurdle than the overarching logistics situation, noting active repair efforts and no indications of delays beyond the logistics constraints.
Yet, supply chain experts warn that if the resin stoppage extends into the autumn, well within Fittering's estimated timeframe, consumers will inevitably face significant price hikes on a wide range of electronics.
Evidence of this inflationary pressure is already emerging. The April producer price index (PPI) data revealed that plastic resins and materials were among the primary drivers behind a staggering 9.4% annual increase in processed goods prices, marking the steepest rise in over three years.
Recently, CNBC offered a rare glimpse inside TTM, a U.S.-based PCB manufacturer, highlighting the extreme fragility of the computer component supply chain. The report underscored a dramatic shift: in 2000, 30% of PCBs were manufactured in the U.S.; today, that figure has plummeted to just 4%, with China now dominating global production.
Crucially, regardless of where PCBs are assembled, the vital resin inputs largely originate from the same global sources.
Even industry giants are feeling the heat. Victory Giant in China, a major PCB supplier for Nvidia, has already cautioned that the Middle East conflict could escalate prices for key ingredients like copper and resin. A Goldman Sachs note cited by Reuters indicated that printed circuit board (PCB) prices surged by up to 40% between March and April. TTM (TTMI), whose stock has soared over 400% in the past year, has confirmed it is increasing its own prices by 5% to 25%.
Mark Vena, CEO and principal analyst at SmartTech Research, anticipates that consumers will soon experience the pricing pain, though perhaps not explicitly linked to resin shortages at the point of sale. "In all probability, consumers probably will not hear 'PPE resin shortage' at the Apple Store, but they may feel it in higher prices, longer repair times, tighter launch inventory, and fewer discounts," Vena explained. Given that PCBs are the literal nervous system of every modern device, a spike in board costs will swiftly ripple through products like phones, laptops, wearables, gaming consoles, routers, and sophisticated AI servers. Vena expects "upward pricing pressure across premium electronics," rather than a direct "resin surcharge" on the next iPhone.
Apple and the supply chain economics inside the smartphone
Apple, with its immense purchasing power, long-term supplier agreements, advanced forecasting, and rapid redesign capabilities, is better positioned than many competitors. However, Vena stresses that "insulated does not mean immune, because every iPhone still depends on high-reliability circuit boards and the same global materials web that everyone else uses." He concludes, "Apple can move the pain around, but it cannot make a concentrated petrochemical bottleneck disappear."
Manufacturers may absorb some of the initial cost increases, particularly larger players like Apple, offsetting these through slimmer promotions, higher storage costs, or by steering consumers toward more expensive configurations instead of dramatic base price hikes. Yet, the industry faces a unique challenge in a niche market where tech giants like Apple, Nvidia, and Google vie for PCB-grade glass cloth from a single supplier.
Many companies, Vena points out, have far less economic flexibility than Apple to absorb such a hit. He suggests the most immediate pressure will likely manifest in lower-margin devices such as PCs, accessories, gaming hardware, routers, and midrange Android phones, where manufacturers have less margin to absorb a 40% PCB cost shock.
For all smartphone manufacturers, the cost increase could be most acutely felt in the foldable smartphone segment, a market Apple may soon enter, despite reports of potential delays for an anticipated September 2026 release.
Thad Hwang, founder and CEO of Goji Mobile, believes that flagship phones like the iPhone 17 and Samsung Galaxy S26 series won't see immediate price increases in the next couple of months due to well-established retail prices and robust inventory. However, he warns that the longer-term repercussions of semiconductor manufacturing disruptions and supply chain instability could fully impact the market by autumn.
Usha Haley, a supply chain expert and professor at Wichita State University, revealed that the Jubail complex in Saudi Arabia alone supplied approximately 70% of the world's high-purity polyphenylene ether resin. "Production has now come to a standstill and no alternative supplier exists to fill the gap," Haley stated, adding that PCB prices have surged by 40% in just one month, and lead times for crucial epoxy-resin inputs have ballooned from three weeks to fifteen.
Resin replacements for high-end tech don't exist
Finding immediate, ready-made replacements for this specialized resin is proving incredibly difficult, despite ongoing industry exploration of alternatives.
High-purity PPE resin is irreplaceable in advanced PCBs due to its essential electrical, thermal, and reliability characteristics, particularly where signal integrity is paramount. While substitutes might suffice for some lower-end electronics, any material change for premium smartphones, RF components, AI servers, and automotive electronics necessitates costly and time-consuming requalification, redesign, and extensive testing. "This is not like swapping one screw for another," Vena emphasized.
Engineers might explore shifting to PTFE or epoxy-based laminates for less demanding, lower-frequency applications. However, this resin shortage, combined with existing memory-price increases and tariffs, is projected by supply chain experts to push the price of electronic devices to their highest levels in a decade by the autumn.
Advocates for resin and other plastics are seizing on these supply disruptions as a compelling argument for increased onshoring of plastics production. The Plastics Industry Association, a leading trade group, affirmed it is closely monitoring the situation. Matt Seaholm, president and CEO of the trade group, underscored the necessity of "building resilient supply networks that support American manufacturers, businesses, and the consumers who depend on plastic products every day," while also noting the resilience of the current resin supply chain. He added, "Global supply disruptions affect every industry, and plastics are no exception. The U.S. has a strong domestic manufacturing and materials base that helps keep resin supply chains moving during periods of uncertainty."
Sridhar Tayur, a professor of operations management at Carnegie Mellon University and a distinguished supply chain specialist, contends that the U.S. lacks the manufacturing capacity to compensate for the lost resin, and that crucial skills have migrated elsewhere. He observes that leaders often fail to act until a crisis, like the current one, is already upon them.
Even larger, better-positioned companies, Tayur warned, will begin to feel the resin pinch if the shortage isn't alleviated promptly. "Suddenly, people are going to be drawing down on the inventory they have," he noted. He projects that if the Saudi Arabian plant remains offline for another couple of months, the problems will intensify, particularly affecting data centers, routers, and high-end 5G phones – devices where the specialized resin's properties are most critical. The impact, he believes, will catch most consumers by surprise, potentially leading those eyeing higher-end phones to delay purchases due to either availability constraints or prohibitive prices.
For Apple and other electronics manufacturers, Tayur concluded, "there's not much they can do about shortage, if it's just not there."
—CNBC's Katie Tarasov contributed to this report.
