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The ongoing conflict involving the United States, Israel and Iran could disrupt supplies of key materials used in semiconductor manufacturing, a South Korean ruling party lawmaker has warned.
Kim Young-bae said concerns were raised during discussions with executives from chipmakers including Samsung Electronics and industry groups, as the Middle East conflict entered its sixth day.
According to Kim, semiconductor production could be affected if essential materials sourced from the region become difficult to obtain. One such material is helium, which is widely used in chip manufacturing for heat management and currently has no viable alternative.
Helium production is concentrated in only a few countries, with Qatar among the world’s major suppliers. Any disruption in the region could therefore affect global availability of the gas.
The warning comes at a time when semiconductor manufacturers are already dealing with supply constraints driven by rising demand for chips used in artificial intelligence data centres. The surge in AI-related demand has tightened chip supplies across several sectors, including smartphones, laptops and automobiles.
South Korean memory chipmaker SK Hynix said it has secured diversified supply chains and maintains sufficient helium inventory, adding that it does not currently expect any disruption to its production.
Taiwanese contract chipmaker TSMC also said it does not anticipate any immediate impact from the situation but is monitoring developments closely.
Meanwhile, U.S.-based chip manufacturer GlobalFoundries said it is in contact with suppliers and partners in the region and has mitigation plans in place.
South Korea’s industry ministry said the country depends heavily on the Middle East for several other items used in semiconductor supply chains, including bromine and certain inspection equipment. However, officials said many of these materials can also be sourced domestically or from alternative markets if necessary.
Kim Young-bae said concerns were raised during discussions with executives from chipmakers including Samsung Electronics and industry groups, as the Middle East conflict entered its sixth day.
According to Kim, semiconductor production could be affected if essential materials sourced from the region become difficult to obtain. One such material is helium, which is widely used in chip manufacturing for heat management and currently has no viable alternative.
Helium production is concentrated in only a few countries, with Qatar among the world’s major suppliers. Any disruption in the region could therefore affect global availability of the gas.
The warning comes at a time when semiconductor manufacturers are already dealing with supply constraints driven by rising demand for chips used in artificial intelligence data centres. The surge in AI-related demand has tightened chip supplies across several sectors, including smartphones, laptops and automobiles.
South Korean memory chipmaker SK Hynix said it has secured diversified supply chains and maintains sufficient helium inventory, adding that it does not currently expect any disruption to its production.
Taiwanese contract chipmaker TSMC also said it does not anticipate any immediate impact from the situation but is monitoring developments closely.
Meanwhile, U.S.-based chip manufacturer GlobalFoundries said it is in contact with suppliers and partners in the region and has mitigation plans in place.
South Korea’s industry ministry said the country depends heavily on the Middle East for several other items used in semiconductor supply chains, including bromine and certain inspection equipment. However, officials said many of these materials can also be sourced domestically or from alternative markets if necessary.
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