Helium shortage hits semiconductors

A helium squeeze tied to the Strait of Hormuz is starting to reach chip factories, where the gas is used to cool tools, check for leaks and keep production lines stable. (cen.acs.org, airproducts.com) Qatar has supplied about one-third of the world’s helium, and recent attacks on Ras Laffan plus shipping disruption through Hormuz have cut into that flow. The American Chemical Society’s Chemical & Engineering News reported in March that the conflict hit both production and transport. (cen.acs.org, theconversation.com) Helium is not a side material in chipmaking. Air Products says semiconductor manufacturers use it for heat transfer and for a stable inert atmosphere, and helium is also widely used in leak detection for vacuum equipment. (airproducts.com, marketwatch.com) That leaves fabs exposed at the same moment demand for advanced chips remains high. Fitch Ratings said on March 17 that Asia’s semiconductor supply chain faced “rising tail risk” if helium shortages outlasted inventory buffers and forced higher-cost sourcing or production prioritization. (fitchratings.com, forbes.com) The problem is concentrated because helium does not come from many places. United States Geological Survey data for 2024 showed the United States and Qatar as the two biggest producers, with Qatar accounting for 64 million cubic meters out of roughly 180 million cubic meters worldwide. (catalog.data.gov, ibselectronics.com) Gas suppliers have been trying to blunt the shock. Linde said in July 2025 that it opened a helium storage cavern in Beaumont, Texas, with capacity of more than 3 billion cubic feet to help balance supply and demand cycles. (linde.com) Some chipmakers are also moving to lock in supply. The Elec reported on April 8 that Samsung Electronics and SK hynix signed additional long-term helium agreements with Linde and Air Products after the Iran-linked supply scare. (thelec.net) The risk has not vanished just because new contracts were signed. Helium is hard to replace in several fab processes, and the industry is still relying on a narrow chain of producers, refiners, shippers and storage operators while traffic around Hormuz remains a live geopolitical fault line. (smithweb.com, linde.com)