Khaberni - Executives in the technology sector said that the decrease in helium supplies as a result of conflict in the Middle East has begun to impact some production processes in the global technology supply chains, prompting companies to look for alternative sources.
Helium is used in several key stages of chip manufacturing, including cooling, leak detection, and precision manufacturing processes, and its prices have increased significantly since the onset of the crisis in the Middle East.
Helium supplies, which are a byproduct of natural gas processing, are significantly concentrated geographically, with Qatar producing nearly one-third of the global supplies, according to Reuters citing data from the U.S. Geological Survey.
Cameron Johnson, a senior partner at Tidal Wave Solutions consulting for supply chains, said during the SEMICON China expo in Shanghai, one of the sector's largest annual gatherings: "The helium shortage represents a major concern."
He added that companies currently have limited options, except to slow down production and prioritize essential products, noting that many hope for a quick solution.
Johnson said that if the shortage continues for a long period, it may force production cuts and its impact could extend across multiple industries, from electronics to automobiles.
He continued: "With the shortage, companies might begin to slow down production or eventually stop it, especially in chip manufacturing," adding: "If this happens, we will witness an impact on things like electronics, cars, and even smartphones."
Jerry Chang, head of sales in China at the Swiss semiconductor component company "VAT," said that the conflict in the Middle East has complicated helium supplies, and it is already affecting production in his company and others, adding that transport delays exacerbate this effect.
The companies are seeking alternative sources, including from the United States.
This disruption extends to broader supply chains associated with the region. Zhou Limin from the "MRSI" unit of the company "Mycronic" said that some raw materials imported from Israel experienced delays, leading to extended delivery periods, negatively impacting customers by increasing supply periods from suppliers.
Limin said: "There was definitely a short-term impact, and it has already affected us."
An executive from the French industrial gases group Air Liquide also warned on Wednesday of a temporary helium shortage.
