The repercussions of conflict in the Middle East are extending beyond energy markets into the electronics supply chain, according to a report. A key industrial zone in Saudi Arabia, which previously supplied approximately 70% of the world's PPE resin, has been offline since late March due to shipping disruptions in the Strait of Hormuz. Resin is a crucial material for manufacturing printed circuit boards (PCBs), with PPE resin specifically used for high-end products. PCBs are essentially the "nervous system" of electronic devices, found in everything from smartphones and laptops to routers and AI servers. Industry experts warn that if the resin supply disruption continues into the autumn, consumers will begin to feel the pressure of price increases.
Analysis from Bank of America points to a stable supply-demand dynamic across the copper-clad laminate (CCL) and PCB industry chain, with a positive outlook for product pricing and corporate profitability. Morgan Stanley's supply chain research indicates the PCB cost for NVIDIA's VR200 has surged by over 233% compared to the GB300, pushing the total PCB value to around $117,000, up from $35,000 for the GB300.
Citigroup's research suggests that price increases for electronic glass fabric, which have been higher than anticipated, are expected to translate into average selling price inflation for CCL very soon, potentially by the end of this month. The rise in CCL prices is primarily cost-driven, with key components being copper, electronic glass fabric, and epoxy resin.
A Goldman Sachs report shows that PCB prices in April alone rose by up to 40% compared to March. Reflecting this industry momentum, the share price of U.S. PCB manufacturer TTM Technologies has surged over 400% in the past year.
Related Hong Kong-listed PCB Industry Stocks
KB LAMINATES (HKG: 01888): The company, a major PCB producer, notes an interesting shift in the market where clients are currently prioritizing delivery capability over cost sensitivity. The firm plans to implement a product price increase exceeding 15% in the second quarter of 2026, with potential for further hikes. On May 27th, KB Laminates issued another price adjustment notice, raising prices for its board materials and PP products by 10% (all thicknesses) and 20% respectively, marking its fourth price increase this year.
KINGBOARD HLDG (HKG: 00148): A Citigroup report indicates that by 2028, approximately 85% of Kingboard's core net profit is expected to come from its laminate/PCB business, up from around 60% in 2025.
VGT (HKG: 02476): According to a Nomura report, VGT is considered one of NVIDIA's most critical PCB suppliers. It is projected to capture about 50%-55% of the supply for NVIDIA's next-generation Rubin platform (2026-2028). The PCB value per NVIDIA GPU unit is expected to rise from $400 for Blackwell to over $1,000 for Rubin Ultra. This is forecast to directly boost VGT's revenue contribution from NVIDIA from 9% in 2024 to 38% by 2028.
DELTON (HKG: 01989): This company specializes in the R&D, production, and sales of customized PCBs for computing power scenarios. Its core products are used in computing servers (including AI and general servers), while it also has businesses in industrial and consumer PCBs and a small amount of other recyclable materials. It operates three major production bases in Guangzhou, Huangshi, and Thailand. The Guangzhou base focuses on high-end server PCBs with consistently high capacity utilization; the Huangshi base targets consumer, industrial, and mid-to-low-end server PCBs with steadily improving utilization; and the Thailand base, which commenced commercial production in June 2025, is currently in the ramp-up phase.
HANS CNC (HKG: 03200): As a leading enterprise in PCB-specific equipment, HANS CNC is capitalizing on industry growth opportunities. To meet the technical demands for ultrafast laser processing of M9 and Q-cloth materials used in double-sided HDI boards for Rubin and subsequent AI PCB products, the company's ultrafast laser drilling machines hold a significant competitive advantage. The company is currently engaged in collaborative verification with major downstream manufacturers, having completed sample deliveries with most. Verification progress is advancing rapidly with some partners, and its laser drilling machine solution for the M9 specification has already received NVIDIA certification, with mass shipment of this product anticipated in 2026.
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