Tightened helium supply due to the ongoing Middle East conflict has started to affect parts of the global technology supply chain, forcing companies to urgently seek alternative sources, according to industry executives.
Helium is used in several critical stages of semiconductor manufacturing, including cooling, leak detection, and precision fabrication processes. Prices for the gas have surged since the Middle East crisis began.
As a byproduct of natural gas processing, helium supply is highly geographically concentrated, with Qatar accounting for nearly one-third of global production, according to data from the U.S. Geological Survey.
“Helium shortage is a real concern,” said Cameron Johnson, senior partner at Tidal Wave Solutions, speaking at Semicon China in Shanghai, one of the industry’s largest annual gatherings.
He noted that companies currently have limited options beyond slowing production and prioritizing critical products, while hoping for a near-term resolution.
If the shortage persists, production cuts could follow, with ripple effects across multiple industries, from electronics to automotive. “As shortages intensify, companies may be forced to scale back or even halt chip production,” he said. “If that happens, you will see impacts across electronics, automobiles, and even smartphones.”
Jerry Zhang, China sales head at VAT, said the Middle East conflict has already tightened helium supply and begun affecting production at his company and others. He added that transportation delays are compounding the disruption.
Companies are now exploring alternative supply sources, including from the United States. The disruption is also spilling over into broader supply chains linked to the region. Zhou Limin of Mycronic noted that some raw materials sourced from Israel have been delayed, extending delivery times and impacting customers as supplier lead times increase.
“There has definitely been a short-term impact, and it has already affected us,” Zhou said.
An executive from Air Liquide also warned of a near-term helium shortage, underscoring growing concerns across the industry.
