Iran hits cartel helium exports hard, global chip production faces crisis

# Dong Jing

Source: Wall Street CN

Iranian attacks have severely damaged facilities in Qatar, cutting global helium supply by one-third. As an irreplaceable cooling material for chip manufacturing, spot helium prices have doubled. South Korean chip giants, which rely heavily on Qatari supplies, have borne the brunt, with their market value evaporating by more than $200 billion. Experts warn that the real shortage shock will fully erupt in a few weeks, posing a severe threat to the global semiconductor supply chain.

Iran’s military strikes on Qatar’s natural gas export facilities are turning an energy crisis into a systemic threat to the global semiconductor supply chain.

As the source of **one-third of the world’s helium supply**, Qatar’s Ras Laffan complex has suffered “massive” damage, sending spot helium prices **doubling in 14 days** with contract surcharges exceeding 30%.

After Qatar’s state-owned energy company announced it would cut annual helium exports by 14%, the crisis has shifted from expectation to reality. South Korean chip stocks have plunged: Samsung and SK Hynix rely on Qatar for about 65% of their helium imports, and the market value of South Korean chipmakers has erased more than $200 billion this month. Experts caution: the real shortage has not yet arrived, but it “will truly break out in a matter of weeks.”

## Qatar Facilities Devastated, One-Third of Global Supply Vanishes Abruptly

Qatar holds the world’s largest single natural gas field, and its Ras Laffan complex is the world’s biggest liquefied natural gas (LNG) plant. Helium, a byproduct of natural gas production, is refined there, accounting for roughly **30% of global helium supply**.

On March 2, an Iranian drone strike forced QatarEnergy, the state energy firm, to halt production of LNG and “related products.” Four days later, QatarEnergy declared **force majeure**, meaning it could no longer fulfill contractual obligations to customers.

Ras Laffan was hit again by Iranian attacks last Wednesday and Thursday. QatarEnergy subsequently reported “massive” damage to the facilities, with repairs expected to take years, and annual helium exports to be reduced by 14%.

According to Wall Street CN, all three of Qatar’s helium production facilities have ceased operations. *C&EN*, a publication of the American Chemical Society, warned that “if the conflict lasts more than two weeks, the chaos facing helium users could take months to resolve.”

Phil Kornbluth, President of Kornbluth Helium Consulting, stated:

“This makes the situation far worse. The most optimistic scenario is partial helium production resumption in six weeks, but under current conditions, this is highly unlikely.”

Spot helium prices have doubled within 14 days of the crisis, with contract surcharges now above 30%. Kornbluth expects further price increases: “If the shutdown drags on, contract prices could rise sharply — there is significant room for upward movement.”

However, he also noted that **actual shortages have not yet materialized**. Helium containers being loaded at the outbreak of the conflict still take weeks to reach Asia. “No one is facing supply cuts yet, but in a few weeks, shortages will truly erupt.”

## Helium: The Underappreciated Lifeline of Chip Manufacturing

To the public, helium is little more than an inert gas that makes balloons float. But in semiconductor manufacturing, it is an irreplaceable key material for wafer cooling.

During the chip etching process, helium is continuously blown onto the back of wafers to quickly and evenly dissipate heat and maintain stable surface temperatures.

Jacob Feldgoise, an analyst at Georgetown University’s Center for Security and Emerging Technology, noted that in this process, “helium is an excellent thermal conductor. Chip fabs blow helium onto the back of wafers to accelerate and uniformize heat removal.”

Professor Jong-hwan Lee of Semiconductor Devices at Sangmyung University in South Korea stated clearly: under current semiconductor manufacturing processes, **no viable alternative exists to helium for wafer cooling**.

Helium’s industrial uses extend to healthcare and aerospace: the medical sector uses it to cool superconducting magnets in MRI machines, while the aerospace industry uses it to purge rocket fuel tanks. Demand continues to grow as launch frequencies rise at companies like SpaceX and Blue Origin.

Notably, helium’s physical properties make storage and transportation extremely complex: its molecules are so tiny that even the smallest gaps cause leakage. Liquid helium must be stored in insulated containers and shipped through the Strait of Hormuz. These specialized containers can only preserve helium for **35 to 48 days**; beyond that, helium vaporizes and escapes through pressure-relief valves.

Around 200 such containers are currently stranded in the Middle East, each costing approximately $1 million, with a very limited global reserve fleet. Kornbluth said:

“Moving these containers out of Qatar and to other locations where helium can be refilled will take considerable time. This initial supply chain restructuring period will likely be the most severe phase of the shortage.”

## South Korean Chip Giants Bear the Brunt, Market Value Down Over $200 Billion

The crisis hits South Korea’s semiconductor industry particularly directly.

Data from the Korea International Trade Association show that in 2025, **64.7% of South Korea’s helium imports came from Qatar**.

Fitch Ratings noted in a report that South Korea is among the world’s most vulnerable nations to helium supply shortages, with Samsung Electronics and SK Hynix — the world’s two largest memory chipmakers — both facing major supply risks.

The Seoul government has listed helium as one of 14 semiconductor supply chain materials requiring urgent monitoring due to the war. Professor Jong-hwan Lee warned:

“Even disruptions to a few materials can destabilize the entire chip manufacturing flow, as every production stage depends on the prior one.”

Markets have reacted first: South Korean chipmakers have lost more than $200 billion in market value this month, as investors price in expectations of a **15%–20% production decline in 2026**.

According to Wall Street CN, SK Hynix has built up helium inventories and secured additional supply channels, largely insulating it from near-term shocks. But medium-term risks remain: even if supplies are not fully cut off, switching to qualified alternative suppliers takes time.

Bloomberg economist Michael Deng noted: “Helium shortages could force chipmakers to prioritize higher-margin AI chips over lower-margin components.” That means consumer-grade chip markets will face pressure first.

## Global Supply Structure and Limits of Alternatives

Global helium production is highly concentrated.

The U.S. is the largest producer, with 81 million cubic meters last year. Qatar, Algeria, and Russia are other major producers, though Russian supplies are restricted by U.S. and EU sanctions. The U.S. Geological Survey estimates the U.S. holds 8.5 billion cubic meters of recoverable helium reserves, with the rest of the world holding 31.3 billion cubic meters.

Although the U.S. and Australia could theoretically provide alternative supplies, supply chain restructuring cannot happen overnight. Kornbluth pointed out that around 200 specialized storage and transport containers are stuck in the Middle East; reallocating these containers and establishing new supply routes is among the most difficult bottlenecks in the crisis.

Experts generally agree a full-scale helium crash is unlikely — in shortage scenarios, the helium industry allocates supplies by priority, with chip manufacturing and healthcare receiving preferential access.

Since helium accounts for a small share of total semiconductor production costs, chip fabs “are willing to pay higher prices” to secure supply. But this logic depends on alternative supplies arriving in time.

## Bromine: The Next Potential Flashpoint

Wall Street CN also notes that beyond helium, **bromine** — another critical semiconductor material — warrants close watch. Bromine is used in semiconductor etching; high-purity hydrogen bromide is widely applied in polysilicon etching for DRAM and NAND flash memory production.

South Korea imports **97.5% of its bromine from Israel**, making it one of the 14 semiconductor supply chain items with the highest Middle East dependence. Bromine is currently classified as a potential risk factor and remains in a relatively stable zone, but its vulnerability could quickly emerge if the conflict spreads further.

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