The blockade of the Strait of Hormuz and attacks on energy infrastructure in the Persian Gulf have disrupted the 30% of the exchanges of heliuma gas that plays a crucial role in semiconductor manufacturing. Let’s talk about a cryogenic gasthat is, used at extremely low temperatures in liquid form to cool the circuit printing systems on the silicon wafers with which the chips are made. The concentration of helium production in a few countries – in particular United States And Qatar – makes this raw material vulnerable to geopolitical shocks like the one we have been experiencing for over two weeks now.
Let’s be clear: at the moment we are not facing an immediate halt in global chip production. In fact, large companies have helium reserves and recycling systems, which allow them to reuse part of the gas used.
Qatar, the Strait of Hormuz and the helium crisis: what’s happening
It all started on March 2, when Iranian drones hit theRas Laffan plant in Qatarwhich led to the suspension of activities. The agency Reutersin referring to this episode, stated:
State-owned energy giant QatarEnergy, the world’s second-largest LNG exporter, announced last week it was halting production at its 77 million tonnes per annum (mtpa) plant and declared a state of force majeure on LNG shipments, due to the conflict.
Among the countries most exposed due to this scenario is Taiwana global hub for the production of the most advanced semiconductors, which now stands on the brink of a potential energy and raw materials crisis. The island matters about the 97% of the energy it consumes and depends significantly on the Middle East, where it comes from approximately 37% of the fuel used in its electricity grid, which is heavily based on LNG. This energy is essential to power very energy-intensive systems such as those of TSMC (Taiwan Semiconductor Manufacturing Company), which require continuous and stable supplies to guarantee the precision of production processes. , hit in the context of the conflict, has activated a dynamic that involves the entire supply chain: from the Taiwanese factories to TSMC (Taiwan Semiconductor Manufacturing Company) to AI data centers in the United States.
LNG is the raw material from which helium is produced: it is no coincidence that Qatar alone is responsible for a third of the world’s helium production. Among the countries most exposed due to this scenario there is precisely Taiwanwhich does not have domestic production and imports this gas mainly from the United States and Qatar for the production of chips. Therefore, the destabilization in the Persian Gulf area, combined with the blockade of the Strait of Hormuz, is not only affecting Taiwanese energy supplies, but is also amplifying the risk of interruptions in the availability of helium, with potential direct repercussions on global semiconductor production.
In this sense Alexander RomanenkoCEO of the market research firm IndexBoxstated:
If these conditions (supply disruptions) persist, the market will effectively find itself short of approx 5.2 million cubic meters of helium per month.
The consequences for the tech industry
The problem is that even a brief interruption in helium supply has cascading effects throughout the semiconductor supply chain. In fact, helium is not easily replaceable in industrial semiconductor processes, where it serves to maintain extremely stable conditions during lithography, i.e. the phase in which circuits are printed on chips. Second Phil KornbluthOf Helium Consultingif the Hormuz blockade persists for another week it will take months for helium production, logistics and supplies to return to normal.
In a context of this type, the invocation of a state of force majeure by the Ras Laffan plant generates strong uncertainties as it avoids companies from paying penalties in the event of failure to comply with contractual obligations. This generates ainstability which inevitably translates into cost pressure. According to analysts of the caliber of Anish Kapadia Of Akap Energyif the crisis continues helium price could pass by $450-$600 per thousand cubic feet a thousands of dollars per unit volume. This would alter the economic balance of a sector, that of semiconductors, which is worth around one trillion dollars and which supports fundamental infrastructures such as the cloud and artificial intelligence.
At the same time, we observe a second level of criticality linked to other raw materials such as bromineused precisely in the processes of circuit engraving. Bromine production is concentrated in geopolitically sensitive areas such as Israel And Jordanwhich amplifies systemic risk. In any case, among the critical materials, helium remains the most monitored, because its availability directly affects the operational continuity of factories.
