South Korea has warned that the escalating conflict involving Iran could disrupt the supply of crucial materials for semiconductor manufacturing. A ruling party lawmaker highlighted concerns that a prolonged Middle East crisis may lead to higher energy costs and impact the global chip industry, which South Korea heavily influences.
Concerns stem from the potential inability to source key materials like helium from the Middle East. Helium is an indispensable component in semiconductor production, with no current viable alternatives. Major players like Qatar and the US dominate its limited global supply.
This warning arrives as chipmakers already face significant supply chain challenges due to soaring demand from AI data centers. While SK Hynix reports sufficient helium inventory, other major players like GlobalFoundries are actively monitoring the situation and have mitigation plans in place.
The crisis could also hinder long-term plans by major tech firms to establish AI data centers in the Middle East, potentially dampening robust chip demand.