Korea, Taiwan chip sectors most exposed to helium shortage amid Middle East war: Fitch
South Korea and Taiwan face the highest risk as they source most of their helium from Qatar, while Japan is seen as relatively stable, Fitch says
As semiconductor industries across South Korea, Taiwan and Japan contend with possible energy shortages due to the ongoing conflict in the Middle East, they also face differing levels of vulnerability regarding helium supply, according to Fitch Ratings.
Helium, a by-product of natural gas extraction used in semiconductor manufacturing for ultra-clean cooling, leak detection and inert shielding, faces a global squeeze, with Qatar among the world’s most important suppliers.
This comes as the US-Israeli attacks on Iran have already disrupted liquefied natural gas (LNG) production in Qatar, a leading LNG supplier, and constrained shipments through the Strait of Hormuz, a key energy chokepoint that is now paralysed.
Fitch said in a note on Tuesday that South Korea “appears among the most vulnerable”, having sourced “about 64.7 per cent of its helium imports from Qatar last year”. Taiwan “faces similar risks as it relies on Qatar for the majority of its helium supplies”, it added.
Japan’s supply, by contrast, was more diversified, with about half coming from the US and 28 to 33 per cent from Qatar, alongside inventories held in both locations, Fitch said.
The ratings agency warned that medium-term risks could emerge if disruptions persisted and replenishment cycles became harder to manage.
