I don’t know which thread would fit this best, but as many of you know, the Strait of Hormuz is of great importance for Qatar’s helium shipments. Oil and LNG are usually the ones in the headlines, but if the crisis is prolonged, it could lead to significant challenges in semiconductors.
No Helium, No Semiconductors" — Samsung, SK Hynix on High Alert
As global logistics tensions escalate in the wake of the Iran crisis, South Korea’s semiconductor industry is facing supply instability for helium gas, a critical process material. Ships transporting helium have come under restrictions at the Strait of Hormuz — a key Middle Eastern shipping lane — causing disruptions across the broader supply chain. Industry voices are calling for diversification away from Qatar-dependent supply toward alternative sources such as the United States and Russia.
According to industry sources on the 11th, major chipmakers including Samsung Electronics and SK Hynix have been closely monitoring their helium gas procurement situation following the outbreak of the U.S.-Iran conflict late last month, and are exploring strategies to expand helium recycling systems.
Helium is an industrial gas essential to semiconductor manufacturing. Inside the process chamber — the enclosed environment where wafer fabrication takes place — helium is used to purge residual gases after each process step. Given that semiconductor circuits are fabricated at the nanometer (nm) scale, ultra-high purity helium with virtually no contaminants is required. Industry sources indicate that helium of up to 99.9999% purity (6N grade) is used in these processes.
The core problem is that South Korea’s semiconductor helium supply chain is heavily concentrated in a single region. According to the Korea Customs Service, South Korea’s total helium gas imports last year amounted to $226.9 million, of which 64% — or $146.84 million — originated from Qatar. The United States is the second-largest supplier, but at a 28% share, there is a substantial gap relative to Qatar. For high-purity helium used in semiconductor fabrication specifically, industry estimates suggest Qatar’s share approaches 80%, with only marginal contributions from U.S. and Australian sources.
Helium is extracted during the process of cooling Qatar’s natural gas below -162°C to produce liquefied natural gas (LNG). Helium, which is present at a concentration of 0.1–0.5% within LNG, is separated and captured during this liquefaction process. The raw helium is then shipped from Qatar to South Korea, where it undergoes high-purity refining for semiconductor applications.
South Korea’s semiconductor-grade helium supply chain is dominated by the world’s largest industrial gas companies — Linde, Air Products, and Air Liquide. These firms source raw helium from Qatar, transfer it to their Korean subsidiaries, and refine it to high purity at local facilities before supplying it to domestic chipmakers. Among Korean companies, KC Industries — a subsidiary of KC — is known to source helium from Japan’s Iwatani and supply it to Samsung Electronics.
With raw helium supply from Qatar now effectively cut off, the semiconductor industry has gone into emergency mode. One industry official noted: “If Middle Eastern volumes passing through the Strait of Hormuz are blocked, finding alternative supply at short notice is extremely difficult.”
The industry is prioritizing the United States as Qatar’s primary replacement. The rationale is that U.S.-sourced helium has proven quality and is already partially used in fabs, making it immediately deployable despite higher costs. Russian helium producers are also reportedly under consideration, given their significant competitiveness in volume and pricing — though establishing supply channels has been difficult since the Ukraine war.
There are also calls for proactive supply chain diversification even if Middle Eastern sea routes normalize following this episode. One industry official stated: “Given that helium prices have already spiked sharply on multiple occasions, this crisis should be used as an opportunity to expand new supply relationships with the U.S. and Russia to achieve more stable procurement going forward.”
https://www.hankyung.com/article/202603112644i
Rumor has it that Samsung and SK have acquired a six-month buffer stock. According to Grok, Intel instead sources its helium from the United States. I don’t have information regarding TSMC.
