[News] Beyond Helium, 8 Material Risks May Hit Korea’s Chip Supply Chain; Israeli Bromine Imports at 97.5%

As geopolitical risks in the Middle East escalate, South Korea is facing rising uncertainties across its energy and raw material supply chains. According to Korea JoongAng Daily, citing a report from the Korea International Trade Association (KITA), the country’s chip sector could face significant supply disruptions as Donald Trump’s push to blockade the Strait of Hormuz, a key global transit route for oil and gas shipments.

The report, citing sources, notes that beyond crude oil and naphtha, supply instability in materials such as helium, bromine, and ammonia could directly affect South Korea’s key industries, including semiconductors, electronics, petrochemicals, and automotive manufacturing.

In addition to helium and bromine, The Elec reports that KITA identified eight key items exposed to geopolitical risks in the Middle East, including crude oil, liquefied natural gas (LNG), naphtha, liquefied petroleum gas (LPG), aluminum, and ammonia.

Helium Secured for South Korea’s Chipmakers, but Risks Remain

Helium is typically recovered as a by-product of liquefied natural gas (LNG) processing and is widely used as a coolant in wafer fabrication. Bromine, while not directly part of chip structures, is used in bromine-based chemicals essential for etching processes. Both materials are regarded as difficult to substitute in semiconductor manufacturing, as noted by the report.

The production of helium and bromine, both essential for chipmaking, is highly concentrated in the Middle East. According to the report, South Korea relies on Qatar for 64.7% of its helium imports, based on last year’s data. Meanwhile, Qatar accounts for more than 30% of global helium supply, and the disruption has already pushed spot prices up by around 50% compared to pre-conflict levels.

Currently, South Korean Industry Minister Kim Jung-kwan said the country has secured alternative helium supply from the U.S. as of the end of June, ensuring that semiconductor plants will not have to shut down through June, as cited by Korea JoongAng Daily.

Bromine Risks Still Loom for South Korea

As for liquid bromine, The Elec notes that it is used to produce hydrogen bromide (HBr), a key material in semiconductor etching processes. South Korea sources HBr mainly from Japan (47.1%) and the U.S. (23.5%), indicating a relatively diversified supply structure at the intermediate level.

However, the upstream supply chain remains highly concentrated. According to The Elec, global production of liquid bromine, the key feedstock for HBr, is dominated by Israel (46.5%) and Jordan (25.6%), with South Korea’s reliance on Israeli bromine imports reaching 97.5%.

Japan, South Korea’s largest HBr supplier, also depends on Israel for more than 70% of its liquid bromine imports, The Elec adds.

Read more

• [News] Under Qatar’s Shadow: Helium Crunch Hits South Korea Harder, Putting Samsung, SK hynix, TSMC in Spotlight
• [News] From EUV to Backside Cooling: How Middle East Tensions Could Squeeze Bulk Gas Supply for Chipmaking

(Photo credit: Samsung)