South Korea flags risk to semiconductor materials amid Iran conflict
The ongoing war between the United States, Israel and Iran could disrupt supplies of key semiconductor manufacturing materials, raising concerns within the global chip industry. The warning was issued by a South Korean ruling party lawmaker after discussions with semiconductor companies and industry groups, according to a report by Reuters.
Kim Young-bae said industry representatives raised the risk that semiconductor production could be affected if certain materials sourced from the Middle East become unavailable. Speaking to reporters after a meeting with executives from companies including Samsung Electronics, Kim cited helium as one example, Reuters reported.
Helium is used for thermal management in semiconductor manufacturing and currently has no widely viable substitute. Production is concentrated in a small number of countries, with Qatar among the major suppliers.
South Korea’s semiconductor industry accounts for roughly two-thirds of global memory chip supply. According to Reuters, industry representatives also warned that a prolonged conflict could push up energy costs, adding further pressure to chip production.
Chipmakers have already been facing supply bottlenecks as demand from AI data centre operators increases, tightening semiconductor availability for other sectors such as smartphones, laptops and automotive electronics, Reuters reported.
In a statement to Reuters, SK Hynix said it has secured diversified supply chains and sufficient helium inventory, adding that there is “almost no chance” its operations would be affected. Samsung declined to comment.
Other semiconductor companies said they are monitoring the situation. TSMC stated that it does not currently anticipate a significant impact, while GlobalFoundries said it is in direct contact with suppliers and partners in the region and has mitigation plans in place.
South Korea’s industry ministry also noted that the country depends heavily on the Middle East for 14 additional items used in semiconductor supply chains, including bromine and chip inspection equipment. However, many of these materials can also be sourced domestically or from alternative markets, Reuters reported.
