Analysts: Middle East Conflict Unlikely to Disrupt Helium Supply for Chip Production

According to a research report from Bernstein analysts, the conflict in the Middle East is unlikely to impact helium supply and disrupt semiconductor manufacturing. The analysts stated that although Qatar accounts for one-third of global helium production, several factors should provide support. These include corporate inventories, underground storage, increased supply from Russia, and the deepening relationships between chipmakers and industrial gas companies. The analysts noted that in recent years, helium supply growth has consistently outpaced demand, and Russia has increased its helium output due to its abundant reserves. They added that, in any case, chip manufacturers would be prioritized in the event of a helium shortage, as semiconductor fabrication plants are likely among the least price-sensitive major application sectors.