Amid rising chip prices, tech companies may have new ‘headache’ and the reason is US-Israel-Iran war

The global technology companies are already facing challenges with rising semiconductor costs. The US-Israel-Iran war disrupts critical supply chains, particularly affecting the flow of circuit boards and raw materials. Iran’s strategic location along key shipping routes exacerbates this disruption, impacting electronics production for smartphones, laptops, and servers. Companies are forced to seek alternative, more expensive supplies, risking production delays and higher customer costs. Major tech firms like Apple, Dell, and HP monitor the situation closely, while smaller companies with less diversified sourcing face greater strain. The conflict also raises concerns about long-term Middle East stability, impacting global energy and shipping networks. Experts suggest tech firms may need to restructure supply chains, shifting production to regions less exposed to geopolitical risks, though this could take months or years, leaving firms vulnerable in the short term. Additionally, the war has hindered President Trump’s AI chip export push, with the Bureau of Industry and Security facing delays in approvals, creating multi-billion-dollar backlogs for chipmakers and technology companies. Licence approvals for exports to allies like Canada, Japan, and the UK have doubled from 2023 to 2025, averaging 76 days.