Helium, a colorless and odorless inert gas, has unexpectedly become a critical bottleneck for the global AI chip industry.
In the A-share market, helium-related stocks have surged, with the sector rising nearly 13% over the past five trading days. On April 27, helium concept stocks rallied sharply: Jinhong Gas saw gains exceeding 20%, Guangzhou Guanggang Gases & Energy rose over 14%, while Zhongtai Instruments and Jiufeng Energy also advanced.
The rally is driven by a sustained surge in helium prices. Over the past week, helium led gains among chemical products, with domestic spot prices soaring 175% in a single week and accumulating a 358.33% increase year-to-date.
The price surge stems from a dual supply shock. First, an attack damaged core facilities at Ras Laffan Industrial City in Qatar, disrupting approximately 30% of global helium supply with no clear timeline for restoration. Second, Russia announced temporary export controls on helium effective April 14, lasting until the end of 2027. According to Tianfeng Securities, the suspension of Russian exports has impacted both long-term contract and spot importers in China, leading to tighter market supply and further driving up prices.
What began as a regional chemical supply issue is now evolving into a systemic challenge for AI chips, advanced semiconductors, and data center infrastructure.
Helium serves as an irreplaceable coolant in EUV lithography processes. Supply shortages are already increasing production costs for chipmakers and constraining capacity at certain facilities. Analysts warn that if the crisis persists, advanced node yields at foundries such as Taiwan Semiconductor Manufacturing and Samsung could come under pressure, testing the supply chain stability of NVIDIA GPUs and AI ASIC chips.
**Dual Shock: 40% of Global Helium Supply Cut Off Within Six Weeks**
The helium price surge originates from two nearly simultaneous systemic shocks to supply.
The first shock originated in the Middle East, where core facilities at Qatar’s Ras Laffan Industrial City were damaged in an attack in March. Initial repair estimates of "several weeks" have worsened to "three to five years for reconstruction," abruptly removing about 30% of global helium supply. CITIC Securities notes that over 60% of China’s helium imports in 2024 come from Qatar, meaning any escalation in Middle Eastern tensions directly threatens domestic supply chain security.
The second shock came from Russia, which imposed temporary helium export controls on April 14, 2026, effective until the end of 2027. All exports now require approval from the Prime Minister, with exemptions only for Eurasian Economic Union members. As a major global helium producer, Russia’s move effectively freezes about 8–9% of global supply.
Combined, these events have cut or frozen roughly 40% of global helium supply within just six weeks. According to Guojin Securities, with major helium-producing countries—including the U.S., Qatar, Russia, and Algeria—simultaneously affected, the supply-demand imbalance has surpassed levels seen during the 2022 Russia-Ukraine conflict. Meanwhile, extended maintenance at an Australian plant and a 35% drop in arrivals due to Red Sea shipping disruptions have pushed commercial inventories to their lowest since 2008, intensifying upstream hoarding.
**From Yield to Capacity: How Helium Shortages Constrain AI Chips**
Helium’s impact on the global AI chip industry stems from its irreplaceable role in advanced semiconductor manufacturing.
Helium is essential as a coolant in EUV lithography and is widely used in dry etching processes. Advanced nodes at 7nm and below—particularly 5nm, 3nm, and 2nm processes used in AI semiconductors, HBM memory, and advanced DRAM—are highly dependent on helium. In contrast, mature nodes at 28nm and above are less reliant and more resilient to supply shocks.
The initial impact of helium shortages manifests as yield loss. Dry etching processes depend heavily on helium quality margins; restricted supply disproportionately affects yields at leading-edge nodes. Such losses may not show directly in output figures but instead erode capacity invisibly. If yield at Taiwan Semiconductor Manufacturing’s 3nm/2nm lines drops by several percentage points, supplies of key products like NVIDIA GPUs, Broadcom AI ASICs, and Apple mobile SoCs would face immediate pressure.
Industry analysis indicates that EUV-grade helium (99.9999% purity) is in acute global shortage, with some chipmakers’ inventories depleted and production capacity shrinking. Each phase of new semiconductor plant construction—equipment installation, process qualification, and volume ramp-up—consumes large amounts of specialty gases. The startup windows for multiple advanced production lines, including Rapidus’s Chitose plant and Taiwan Semiconductor Manufacturing’s Arizona and Kumamoto 2 facilities, coincide with the peak of the current supply crisis, raising risks of potential delays.
With ongoing Middle East tensions and slow recovery of overseas capacity, concerns over global helium supply are unlikely to ease soon, and prices are expected to remain elevated. For downstream semiconductor and AI computing industries, cost pressures and potential capacity risks stemming from supply chain vulnerabilities remain unavoidable near-term challenges.
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