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

From helium extraction in Qatar to shipping lanes in the Strait of Hormuz, the semiconductor industry depends on fragile links across the Gulf. Escalation could ripple through global chip production.

South Korean officials have warned that the US-Israel war with Iran could hit the global semiconductor supply chain if it disrupts the flow of critical industrial materials from the Middle East.

South Korea’s semiconductor sector, led by giants like Samsung Electronics and SK Hynix, produces about two-thirds of the world’s memory chips. If the Middle East's supply of chipmaking materials is disrupted, semiconductor production could slow unless alternative sources are found quickly.

The Helium Problem

One material at risk is helium, which is essential in chip manufacturing for managing heat, detecting leaks, and maintaining stable temperatures in fabrication equipment. For many of these uses, there is no real substitute.

About 38 percent of the world’s helium ...