The Middle East war cut off roughly a third of the world's supply of helium, the invisible powerhouse of modern technology. The semiconductor industry so critical to artificial-intelligence systems didn't even blink.
Chip makers were one step ahead thanks to a diverse network of suppliers that allowed their plants globally to keep operating at pace, backed by extensive helium storage caverns and on-site inventories.
Best known as the gas that keeps balloons afloat, helium is a byproduct of natural gas production that is essential to many industries, including in the manufacture of advanced semiconductors, while also playing a key role in rocket propulsion and cooling MRI machines.
Qatar, which accounts for around 30% of global helium supply, was forced to halt production of liquefied natural gas early in the conflict due to Iranian attacks on Ras Laffan, a sprawling industrial hub north of Doha. Any disruption to LNG output directly cuts helium supply. Shipments out of the country also stalled after Iran closed the Strait of Hormuz.
As helium supply tightened, industry observers said spot prices more than doubled early in the war on fears that shortages would disrupt the semiconductor industry--but the feared crunch never materialized.
Chip makers have long-term contracts with suppliers of critical gases like helium, nitrogen, and argon that allow them to keep production running in case of disruption. French industrial-gases supplier Air Liquide recently said it would provide high-purity gases to South Korea's SK Hynix, while Samsung Electronics in April tapped Air Products for the supply of industrial gases to a semiconductor facility in South Korea.
Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker supplying giants like Nvidia and Apple, said earlier this month that it didn't expect any significant impact from supply disruptions.
In Europe, German chip maker Infineon Technologies said production hadn't been affected as it continued to source helium from different regions. STMicroelectronics--a key supplier to Apple, Tesla and SpaceX-also reported no operational impact.
"The main reason for the resilience is that semiconductor companies have almost no sensitivity to high helium prices," said Andrei Quinn-Barabanov, Moody's supply chain industry practice lead. "In other words, chip companies have margins that allow them to outbid nearly all other users of gas to secure adequate supplies."
About a quarter of all helium goes to chip companies and, importantly, existing caverns hold more than the industry's annual consumption, according to Quinn-Barabanov.
Linde, the world's biggest industrial-gas supplier, said it was largely insulated from recent disruptions due to its broad sourcing base, and that it remained focused on fulfilling existing customer commitments while also pursuing new multiyear contracts.
Last year, the company commissioned one of the largest helium storage caverns, with a capacity of more than 3 billion cubic feet, in Beaumont, Texas. The site is one of only three large-scale helium salt caverns worldwide--the others are in Germany and Russia.
Air Products--a major supplier and distributor of helium, serving customers in electronics, aerospace and medical imaging--said drawing on its storage cavern in Beaumont allowed it to service clients despite curtailments from Qatar.
State-owned operator QatarEnergy didn't immediately respond to a request for comment. The country is preparing to resume LNG shipments, sending empty carriers back through Hormuz for the first time in months as U.S. and Iranian officials negotiate the terms of a peace agreement.
While Qatar remains a major supplier, alternative sources have also played a growing role in cushioning the market. The U.S., the world's largest helium producer, has supported global supply through extensive storage infrastructure and export capacity, with Oxford Economics saying shipments of rare gases--including helium--rose sharply in recent months.
"The U.S. is the world's largest helium producer and has a huge interest in the stability of chip supplies," Moody's Quinn-Barabanov said. "Between the industry's ability to absorb high prices and the U.S. national interest in supporting semiconductor output, the helium supply would have to tighten significantly before semiconductor manufacturers could face serious disruption."
Write to Giulia Petroni at giulia.petroni@wsj.com and Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
June 25, 2026 06:56 ET (10:56 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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