Why helium shortages could slow down AI chip manufacturing worldwide

Don’t miss the full story, whose reporting from Kelvin Chan at The Associated Press is the basis of this artificial intelligence-assisted article.

Iran’s attacks on Qatar’s natural gas infrastructure have disrupted global helium supplies, threatening semiconductor manufacturing, medical imaging and space industries worldwide.

Some key facts:

• Qatar supplies roughly 30% of the world’s helium as a byproduct of its massive natural gas operations at the Ras Laffan facility.

• QatarGas declared force majeure, meaning it’s unable to supply contracted customers due to circumstances beyond its control, on March 2 after Iranian drone strikes, halting Liquified Natural Gas, or LNG, and helium production.

• Subsequent Iranian strikes caused “extensive” damage to Ras Laffan, cutting annual helium exports by 14% and requiring years of repairs.

• Spot prices for helium have doubled since the conflict began, with contract prices expected to rise significantly if the outage is prolonged.

• Helium is irreplaceable in semiconductor manufacturing, used to cool silicon wafers during the etching process that forms transistor structures.

• South Korea is especially exposed, importing about 65% of its helium from Qatar, putting chipmakers Samsung Electronics and SK Hynix at particular risk.

• Approximately 200 specialized helium containers worth roughly $1 million each are currently stranded in the Middle East.

• A full helium crisis is considered unlikely by experts, as critical industries like chipmaking and medical imaging would be prioritized for allocation in a shortage.

READ MORE: Iran war halts Qatar helium output, threatening global tech supply chains