Hormuz Issues Could Affect Helium Supply, Chip Making

The gas that makes party balloons float is now threatening to puncture the AI boom. A war-driven disruption in helium supply—an essential ingredient in making advanced computer chips—is raising alarms and prices across the semiconductor industry and beyond, the New York Times reports. Helium, mostly produced in the US and Qatar as a byproduct of natural gas, saw roughly one-third of global output knocked offline when Qatari production stopped and Iran struck a key liquefied natural gas facility. With tankers avoiding the Strait of Hormuz and about 200 specialized helium containers initially stranded there, analysts warn that chip makers like TSMC, Samsung, and SK Hynix could feel the pinch in weeks or months, once current stockpiles run down.

The ultra-cold gas cools chip-making equipment and flushes toxic residues; it also keeps MRI magnets chilled and supports scientific research and space work. Suppliers such as Air Liquide are racing to reroute and diversify supply, but storage and transport constraints mean factories can't simply hoard helium. If the squeeze worsens, experts say chip companies will likely pay whatever it takes to keep lines running—potentially shifting the shortage onto hospitals and labs. Cameron Johnson of supply chain consultancy Tidal Wave Solutions said a lengthy shortage could make production cuts necessary in industries including automobiles, per Reuters.