Helium crisis threatens global chip production

A critical shortage of helium is looming over the global chipmaking industry, with prices nearly doubling since the end of February. The key coolant is used in cooling, leak detection, and precision manufacturing stages of chip production.

Strait of hormuz disruptions and south korea's dwindling reserves exacerbate the crisis.

South Korea, a major helium producer and key supplier to chip giants Samsung and SK Hynix, faces depleted reserves that could last until June. These companies are racing to import helium from the U.S. while prices skyrocket.

Qatar, the world's second-largest helium supplier, recently declared force majeure, further reducing global helium availability by nearly a third. This shortage is already rippling through the supply chain, with firms like VAT and Mycronic reporting production delays and extended lead times.

If Middle East tensions persist, the industry faces a grim choice: slow production or shut down lines entirely. Prolonged shortages will eventually impact everything from smartphones to the automotive sector.

Russia, a major helium producer, could provide relief, but Western sanctions block its exports to key markets. China is surging as a helium intermediary, with exports to Moscow increasing by 60% in 2025.