Tension in the Middle East impacts the production of high-tech chips and threatens supply chains; 1/3 of the reserve is from Qatar
Since the start of the war in Iran, concerns about oil and gas have dominated headlines and created the biggest complaints from consumers. But another bottleneck in the global supply chain is causing alarm: a shortage of helium, a key component used in making semiconductors — the tiny chips that help power everything from electric vehicles to smartphones.
A prolonged helium shortage could lead to a shortage of advanced chips and have knock-on effects for the electronics makers that rely on them, or force others to scale back their data center plans.
Essential in chip manufacturing
Considering that helium is colorless, odorless and the 2nd lightest element in the universe, it has a surprising list of applications, both in gaseous and liquid form.
“It is used in areas such as MRI, fiber optic manufacturing, welding, leak detection and airbag inflation, not to mention balloons and blimps.”says Phil Kornbluth, president of the company Kornbluth Helium Consulting, based in New Jersey.
But it’s the semiconductor chip industry that’s going through some very worrying times right now.
Semiconductor-grade helium is essential for chipmakers to maintain ultra-clean, ultra-cold production environments. This contaminant-free helium is also needed for energy and heat transfer, as well as in vacuum chambers.
There is no alternative to very high purity helium for these chip manufacturing processes and, without it, production will be slower or even interrupted. “Helium is expensive compared to other gases, so in most cases where substitutes for helium exist, it goes unused.”said Kornbluth, who has more than 4 decades of experience with commercial helium.
Where does helium come from?
Although there is helium in the atmosphere, most industrial helium comes from natural gas fields and is separated during processing, especially in the extraction of liquefied natural gas (LNG). In practice, helium is a byproduct of LNG production, which is the most profitable business.
It is estimated that there are 31.3 billion m³ of recoverable helium underground worldwide, according to a report from the United States Geological Survey published in early 2026.
The United States has 8.49 billion m³ of recoverable helium, Algeria has 8.2 billion m³ and Russia has 6.8 billion m³. Qatar has 10.1 billion m³, the largest reserve in the world, and will produce just over a third of the world’s helium in 2025.
Following Iran’s attacks, Qatar Energy halted most of its LNG production in the country, meaning helium production is also suspended.
Iran has blocked ships from leaving the Persian Gulf for , so a third of the global helium supply is simply unavailable.
Helium transport and storage
Handling helium is a specialized task. Most of it is transported in bulk in deep-frozen liquid form; the remainder is transported as compressed gas.
As a gas, helium can be stored indefinitely, but the capacity to do so is quite limited, Kornbluth said.
Another option is to use underground caverns to store raw helium in large quantities, but capacity is also limited. There are only 4 private storage facilities of this type in the world: 3 in Texas and one in Gronau-Epe, Germany.
Most liquid helium storage facilities have tanks capable of only a few days to a week of production, Kornbluth said, which is relatively small compared to total production capacity, not to mention growing industrial demand.
Reduced helium reserves and higher prices
For now, companies can count on reserves. And because helium takes several weeks or more to reach major markets in Asia and Europe from Qatar, “it should take at least a few weeks for helium users to feel the impact of a supply shortfall”says Kornbluth.
Because a significant portion of helium comes from Qatar’s gas fields, a blockage of the Strait of Hormuz “makes available helium volumes smaller and prices higher”said Michael E. Webber, a professor specializing in energy at the University of Texas at Austin.
For Qatar, much will depend on how long the waterway remains blocked and how quickly helium shipments resume. For customers like semiconductor manufacturers, finding alternative sources won’t be easy, especially since much of the helium is tied up in long-term contracts.
Deutsche Welle is Germany’s international broadcaster and produces independent journalism in 30 languages.
| | | | | |
