Growing tensions in the Middle East are raising concerns for the global semiconductor industry, as the ongoing conflict involving the United States, Israel and Iran could affect the supply of important materials used to make computer chips.
On Thursday, South Korean ruling party lawmaker Kim Young-bae said the situation might disrupt the supply chain if the conflict continues for a long time. He made the statement after meeting with executives from major tech companies and industry groups in South Korea.
According to Kim, a major factor in the semi-conductor industry is the supply of critical Helium with only a few countries currently producing it in large amounts. Qatar is one of the biggest suppliers of Helium and the ongoing conflict in the middle-east disrupts the supply chain thereby posing a global risk to the semiconductor industry.
The warning comes at a time when the global chip industry is already under pressure. Demand for semiconductors has increased sharply due to the rapid growth of artificial intelligence data centres. Because of this high demand, chip supplies are already tight for many industries, including smartphones, laptops and cars.
However, some major companies say they are prepared. South Korean chipmaker SK Hynix said it has already secured different sources for helium and has enough inventory, so it is unlikely to face major problems. Taiwan’s TSMC also said it does not expect a big impact right now but will keep watching the situation. Another chip company, GlobalFoundries, said it is in close contact with suppliers and customers and has plans ready in case supply problems occur.
South Korea’s industry ministry also said the country depends on the Middle East for about 14 materials used in chip production. But officials added that many of these materials can also be obtained from local sources or other countries if needed.
