Iran War Threatens Chip Production over Helium Shortage

The ongoing conflict involving Iran could disrupt global helium supplies, potentially affecting semiconductor production and pushing chip prices higher if the war continues for an extended period.

Experts cited by CNN warned that helium is a critical material used in semiconductor manufacturing, where it helps regulate temperatures during the production process.

Semiconductors are essential for a wide range of products, including smartphones, computers, automobiles and many other electronic devices.

Tony Huang of DigiTimes said the impact could become noticeable if the conflict lasts for around three months, noting that roughly one-third of global helium production comes from Qatar.

Major semiconductor manufacturers such as TSMC in Taiwan and South Korea’s Samsung Electronics and SK Hynix typically maintain helium reserves sufficient for at least one month of production.

Last week, QatarEnergy announced the suspension of natural gas production and exports. Since helium is extracted as a byproduct of natural gas, the halt in gas production could directly reduce helium supply.

Despite the potential risk, analysts said there is no immediate reason for alarm because existing helium reserves are expected to cover demand in the short term, and several other countries also produce the gas.

Dan Nystedt of TriOrient Investments said the semiconductor industry is unlikely to face major disruptions within the next 30 to 40 days.