The War on Iran Puts Global Chip Supplies and AI Expansion at Risk

"About 38 percent of the world's helium is produced by Qatar, where large extraction facilities are tied to the natural gas industry. This concentration means that disruptions can quickly ripple through the global supply chain."

"South Korea's Industry Ministry said the country also depends on the Middle East for 14 other materials in chipmaking, such as bromine and some chip-inspection equipment. While some of these materials can be sourced domestically or from other markets, shifting suppliers in the semiconductor sector is difficult because chipmakers need to test and validate new sources to meet strict purity standards."

"SK Hynix said it has secured diverse supply chains and maintains sufficient helium inventories, adding that there is 'almost no chance' its operations would be affected in the near term."

South Korean officials warn that US-Israel conflict with Iran could disrupt the global semiconductor supply chain by affecting critical material flows from the Middle East. South Korea's Samsung Electronics and SK Hynix produce approximately two-thirds of the world's memory chips, making them vulnerable to supply disruptions. Helium, essential for chip manufacturing heat management and leak detection, faces particular risk since Qatar produces 38 percent of global supply. QatarEnergy declared force majeure after halting gas production due to attacks. South Korea depends on the Middle East for 14 chipmaking materials including bromine and inspection equipment. While major chipmakers report sufficient current inventories and diverse supply chains, validating alternative suppliers remains challenging due to strict purity standards required in semiconductor manufacturing.

Read at WIRED