The global technology companies are already facing a lot of challenges with the increasing cost of semiconductor but now it appears that they may face a deeper crises as the US-Israel-Iran war disrupts important supply chains.
According to a report by Reuters, the conflict has started to affect the flow of circuit boards and raw materials, increasing costs and creating fresh uncertainty for manufactures around the globe. The strategic location of Iran along key shipping routes has made the war particularly damaging for the electronics industry. The ongoing war has disrupted the movement of circuit boards which is an important component for smartphones, laptops and servers.
As per the Reuters report, this disruption is forcing the companies to look for alternative supplies at higher prices. Analysts also warn that this could lead to production delays and increased customer costs, computing the challenges already posed by inflation and high demand for AI-drive hardware.
Impact on the tech giants
Major tech players such as Apple, Dell and HP are reportedly monitoring the situation closely as supply chain bottlenecks threaten their ability to meet delivery schedules.
The report by Reuters further add that smaller companies which lack diversified sourcing strategies, may be hit even harder. The war has also raised concerns about long-term stability in the Middle East, a region critical to global energy and shipping networks.Experts suggest that if the conflict continues, tech companies may need to restructure supply chains, shifting production to regions less exposed to geopolitical risk.
However, such moves could take months or even years, leaving firms vulnerable in the short term.
Iran war hits Trump’s AI chip export push
Earlier this month, it was reported that Iran war has given a blow to Trump’s AI chip export push. President Donald Trump came to office promising to make America the undisputed leader in artificial intelligence. But the small government office responsible for approving the export of American chips and technology to the world is buckling — and his own administration’s policy choices may be making it worse.
According to a Bloomberg News investigation, the Bureau of Industry and Security, housed within the Commerce Department, is facing a combination of staff departures, lengthy approval delays, and shifting policy direction at precisely the moment it is needed most.Bloomberg reports that export licence approvals for chipmakers and technology companies have stretched to several months, creating multi-billion dollar backlogs — including for shipments bound for close US allies. Citing data compiled by the Semiconductor Industry Association from members including Intel, AMD and ASML, the report says that in the first half of 2025, licences for chip exports to allies such as Canada, Japan and the United Kingdom took an average of 76 days — roughly double the 38-day average recorded in 2023.
