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Geopolitics · Helium · Semiconductors · Supply Chain
The war in Iran, which began February 28, has triggered a critical helium shortage by halting QatarEnergy's LNG and byproduct helium production, blocking the Strait of Hormuz, and removing one-third of global helium supplies from the market, directly impacting high-end chipmakers.
Helium is essential for maintaining ultraclean and ultracold environments in semiconductor manufacturing, with no viable alternative for these processes. A prolonged shortage will slow or halt chip fabrication, affecting electronics manufacturers and datacenter expansion plans.
Qatar, holding the world's largest helium deposit (10.1 billion cubic meters) and producing over a third of global supply in 2025, is a primary source. The US, Algeria, and Russia also possess significant recoverable helium reserves.
Phil Kornbluth of Kornbluth Helium Consulting states that current reserves offer only a few weeks' buffer before users feel the impact. Michael E. Webber, a University of Texas at Austin professor, predicts lower available volumes and higher prices.
The Semiconductor Industry Association (SIA) warned in January 2023 about supply shock risks, noting the concentration of specialized semiconductor-grade helium in geopolitically risky regions like the Middle East and Russia. Global semiconductor sales reached $791 billion in 2025, an increase of 25.6%, underscoring the growing demand for helium.
Diversifying suppliers is the recommended strategy to mitigate vulnerability.
