[News] Iran Conflict Threatens Helium for Chip: China’s Domestic Supply Push in Focus

The Iran conflict is raising concerns over the supply of key semiconductor materials. As noted by Nikkei, Middle East crisis is casting a shadow over Asia’s chip supply chain as fears grow that the de facto closure of the Strait of Hormuz could persist. Seoul is particularly concerned about helium, with Qatar accounting for 65% of South Korea’s helium imports in 2025, according to the Korea International Trade Association.

Tom’s Hardware reports that QatarEnergy has not restarted helium production at its Ras Laffan complex, one of the world’s largest helium hubs. The facility went offline on March 2 following drone strikes, removing roughly 30% of global helium supply.

As highlighted by Wccftech, helium plays a key role in cooling silicon wafers during the high-energy stages of semiconductor production. The report adds that as DRAM makers increasingly rely on EUV lithography, helium is also required to cool sensitive components within these systems.

For now, Nikkei notes that SK hynix has diversified its helium suppliers and secured inventory, while Tom’s Hardware reports that TSMC does not currently expect a significant impact from the shutdown but is continuing to monitor the situation.

China Steps Up Domestic Helium Push Amid Supply Risks

Amid looming supply risks, ijiwei notes that Chinese companies have begun quietly advancing domestic helium initiatives. According to ijiwei, Phase II of Shanxi Zefengda New Energy’s natural gas (coalbed methane) liquefaction, storage, and helium extraction project has officially started construction. The report adds that the project’s R&D team successfully produced 99.9999% (6N) ultra-high-purity helium in 2025.

Notably, ijiwei reports that Guangdong Huate Gas has achieved mass production of 6N ultra-high-purity helium, which can be directly used in chip lithography and etching processes. The company has also secured ASML certification, positioning it as a key supplier in the high-end semiconductor helium market.

In addition, Zhongke Fuhai, as the report notes, has developed proprietary BOG (boil-off gas) helium extraction technology with a recovery rate of up to 98%. As Jiemian News reports, Zhongke Fuhai has filed for IPO tutoring registration with the Beijing Securities Regulatory Bureau, signaling plans for a future stock market listing. Meanwhile, Hangyang has recently secured orders from semiconductor companies for helium recovery systems. As helium becomes increasingly scarce, “recovery” is emerging as a key strategic direction, ijiwei adds.

Ijiwei notes that China’s current annual production capacity of ultra-high-purity helium has reached about 1.2 million cubic meters. Although this only meets roughly 5% of domestic demand, capacity is expanding rapidly. Industry estimates cited in the report suggest that the figure could exceed 3 million cubic meters by 2026, potentially raising the domestic supply share to around 12%.

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