Rising tensions between the United States and Iran are increasing instability in the Middle East, triggering volatility in global energy markets and raising concerns for the semiconductor industry. According to Commercial Times, as demand for AI chips continues to surge, the semiconductor sector is becoming increasingly dependent on stable power supplies to sustain production.
One clear example is TSMC, the world’s largest contract chip manufacturer. The company alone consumes about 9% of Taiwan’s total electricity supply. As a result, any fluctuation in energy prices or supply could potentially affect wafer manufacturing costs as well as future capacity expansion plans.
Institutional investors note that foundries typically have strong pricing power, allowing them to pass part of the increased energy costs on to customers. However, if energy supply becomes unstable while demand for AI chips remains high, it could still affect production efficiency and long-term capacity planning.
TSMC has stated that current supply chain disruptions are not expected to significantly impact its operations. Nevertheless, the company has previously warned in its annual reports that rising electricity prices could lead to higher manufacturing costs.
According to TSMC’s 2024 Sustainability Report, the company’s total electricity consumption reached 27.456 billion kWh. Of this amount, 93% came from purchased electricity, while natural gas accounted for 6.9%. The semiconductor industry is highly sensitive to energy supply conditions. Notably, Qatar has suspended natural gas exports, while approximately 33.7% of Taiwan’s liquefied natural gas (LNG) imports come from the country, raising concerns about potential energy security risks.
Helium and bromine supply risks
In addition to electricity, the semiconductor industry is also closely monitoring potential disruptions to key chipmaking materials. According to Seoul Economic Daily, citing Nikkei, QatarEnergy has suspended production of several natural gas-derived products, including urea, polymers, methanol, and aluminum. This situation may also affect the supply of helium, a byproduct produced during the liquefaction process of natural gas.
Helium is particularly critical for the semiconductor industry because it is used to cool silicon wafers during chip manufacturing. QatarEnergy accounts for roughly 30% of global helium production, making it a strategic supplier for the sector.
However, according to Hankyung, many companies have prepared contingency measures by securing inventories and diversifying supply chains. For example, SK hynix is reported to have stockpiled helium and secured additional supply sources, helping the company avoid short-term disruptions.
Beyond helium, bromine - another important material used in chip production is also drawing attention. Bromine is used in semiconductor etching processes to remove unwanted materials. In particular, high-purity hydrogen bromide (HBr) is used in polysilicon etching for the production of DRAM and NAND flash.
Hankyung also notes that South Korea relies heavily on the Middle East for bromine supply, with 97.5% of its imports coming from Israel. Any disruption in the region could therefore pose potential risks to the global semiconductor supply chain.
