As the Iran war disrupts global oil and gas supply, experts warned that related supply shocks to a critical chipmaking material – helium – could hurt semiconductor production and push already high chip prices even higher should the conflict persist.
A byproduct of natural gas production, helium is a colorless and odorless gas used for temperature management in the production of chips, which are essential for everyday electronics and machinery, from iPhones to vehicles.
He added that most chipmakers, such as Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, typically maintain at least a month of stockpiles.
Qatar: Last week, QatarEnergy, the world’s second-largest liquefied natural gas (LNG) exporter, announced a halt to natural gas production and export, and may not return to normal production for at least a month, Reuters reported. Disruption to LNG output would inevitably reduce helium supply.
But experts cautioned against overreaction for now.
Taiwan’s Industrial Development Administration under its economic affairs ministry told CNN supply of helium remains “stable,” as gas importers can source from alternative suppliers such as the United States and Australia.
The agency, which oversees Taiwan’s electronics and semiconductor sectors, added that most helium used in chip manufacturing is recycled and reused, with only a small portion needing to be replenished through new supply.
