Helium supply shock threatens Asian chipmakers as economic slowdown fears mount

The Iran war is rattling Asian chipmakers as damage to Qatar’s gas facilities chokes off supplies of helium, an essential ingredient in manufacturing products ranging from smartphones to medical scanners.Analysts warn that the supply disruption is expected to trigger ripple effects across the global economy for some time.Pradeep Philip, head of Deloitte Access Economics, said that while there had been considerable focus on the energy shock arising from the conflict, the crisis over helium production was also posing financial and industrial risks.Qatar accounts for a third of the global supply of helium. Iranian attacks on Qatar’s Ras Laffan industrial complex have damaged its liquefied natural gas (LNG) facilities and reduced its LNG export capacity by about 17 per cent, with recovery expected to take three to five years.Helium is one of the main components of the evaporation gas produced in LNG storage tanks. It is used to prevent contamination and cool components during semiconductor manufacturing.South Korea and Taiwan account for about a fifth of global semiconductor capacity and source most of their helium from Qatar.