SEOUL: Escalating tensions involving Iran are jolting global semiconductor supply chains, with disruptions to key industrial gases such as helium and bromine raising risks for South Korea’s chipmakers.
Samsung Electronics and SK hynix, the world’s two largest memory producers, said they have enough helium inventory to weather several months of disruption.
But industry officials warned that a prolonged crisis could tighten supply and push up costs, given the sector’s heavy dependence on the Middle East.
“These materials are not something you can stockpile indefinitely,” one industry official said. “The industry can hold out for a few months, but beyond that, risks rise sharply.”
Helium, a byproduct of liquefied natural gas (LNG) production, is critical for cooling wafers and removing impurities in the chipmaking process. Qatar supplies about 30% of global helium, making it a pivotal source.
Recent strikes have disrupted operations at QatarEnergy’s Ras Laffan Industrial City, the world’s largest LNG export hub, halting production and constraining supply.
At the same time, the effective closure of the Strait of Hormuz is adding upward pressure on prices.
Spot helium prices have jumped between 40% and 100% in some regions, according to industry estimates and Bank of America.
Analysts warned prices could rise a further 25% to 50% if disruptions persist for two to three months.
South Korean manufacturers sourced 64.7% of their helium from Qatar in 2025, according to the Korea International Trade Association.
While companies are relying on inventories and recycling systems to cushion the shock, those measures offer only limited relief.
“Recycling can cover only about 20% of total demand,” another industry official said. “If disruptions are prolonged, a stable supply cannot be guaranteed.”
Efforts to diversify sourcing, including producers in the United States and New Zealand, are under review. But semiconductor-grade gases require lengthy qualification processes that can take months, limiting the industry’s ability to pivot quickly.
The risks extend beyond helium. Bromine, used in etching processes and flame retardants, has surged to more than US$12,000 per tonne, roughly double typical levels.
Israel-based ICL controls about 40% of the global bromine supply, leaving the market highly exposed to geopolitical risk.
South Korean chipmakers rely on Israel for nearly all bromine imports, while inventories remain constrained due to the material’s toxicity, typically covering up to six months.
Tungsten supplies are also tightening. According to the Korea Mine Rehabilitation and Mineral Resources Corp, the price of Chinese tungsten oxide reached US$227.47 per kg as of last Thursday, up more than 24% from US$183.06 in late February, before tensions escalated.
Tungsten is essential for forming microscopic circuits in semiconductors. Its high conductivity makes it a core input in NAND flash memory production, a key business for Samsung Electronics and SK hynix, where tungsten hexafluoride gas is used extensively. — The Korea Herald/ANN
