"Officials raised a possibility that semiconductor production could be disrupted if some of these key materials cannot be sourced from the Middle East. He added that South Korean firms sourced some key chip-making materials such as helium from the Middle East. Helium is essential for heat management during semiconductor production and it has no viable alternatives currently."
"South Korea's chip industry which supplies around two-thirds of global memory chips was also concerned that a prolonged conflict in Iran would lead to higher energy costs and prices, Kim Young-bae said after meeting executives from companies such as Samsung Electronics and trade groups."
"It is only produced in a handful of countries, with Qatar and the US among the leading players in the industry. The caution comes as chipmakers grapple with severe supply bottlenecks due to surging chip demand from AI data centre operators that has tightened supplies to many other industries including smartphones, laptops and automobiles."
Israeli military operations in Tehran and escalating US-Israel tensions with Iran pose significant risks to global semiconductor supply chains. South Korea's chip industry, which produces approximately two-thirds of global memory chips, faces potential disruptions due to reliance on Middle Eastern materials, particularly helium used for heat management in semiconductor production. Helium, produced by only a handful of countries including Qatar and the US, has no current alternatives. The conflict has already disrupted regional airspace and airline operations, stranding tens of thousands of travelers. While SK Hynix reports sufficient helium inventory, the situation compounds existing supply bottlenecks caused by surging AI data center demand affecting smartphones, laptops, and automobiles.
#semiconductor-supply-chain #iran-israel-conflict #helium-shortage #global-chip-manufacturing #middle-east-geopolitics
Read at www.theguardian.com
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