Iran’s attacks this week on Qatar’s natural gas export infrastructure have renewed concerns that the war’s reach could extend beyond energy markets to the global technology supply chain. The disruption matters because helium produced at Qatar facilities is used as an input in industries that require tightly controlled manufacturing processes.
In this case, QatarGas halted LNG and “associated products” on March 2 after Iran’s drone attacks and later declared force majeure, saying it cannot supply contracted customers because of circumstances beyond its control. After further Iranian strikes against the region’s energy producing infrastructure on Wednesday and Thursday, QatarGas reported “extensive” damage and said the repair timeline could span years, cutting annual helium exports by 14%.
Helium supply has already been concentrated. Qatar sits on the world’s biggest single natural gas field and, when the separation process runs, helium is produced as a byproduct of natural gas extraction. The U.S. Geological Survey estimates Qatar supplies about a third of the world’s helium, and Qatar’s helium production is tied to operations at Ras Laffan, the world’s largest liquefied natural gas plant.
Industry and academic analysts said the consequences could show up in both availability and cost. Phil Kornbluth, president of Kornbluth Helium Consulting, said the outlook for returning to helium production quickly is weak, describing a “best case scenario” as involving resumed production “in six weeks or something like that” but saying that, as matters stand, that timetable is “highly unlikely.” Kornbluth also said helium spot prices have risen sharply since the crisis began and could continue rising if the outage extends, even while noting that spot trading typically represents a small share of the overall market because most helium is sold through long-term contracts.
In semiconductor manufacturing, helium’s importance is tied to how reliably it can remove heat during key fabrication steps. Jacob Feldgoise, an analyst at Georgetown University’s Center for Security and Emerging Technology, said helium is used during the etching process when deposited material is removed to form transistor structures, and that chip manufacturers need to maintain a constant temperature across the wafer while drawing heat away. Feldgoise said helium’s properties make it an “excellent thermal conductor,” explaining why chip fabs blow helium over the back of wafers to keep heat removal consistent, and he said that under current semiconductor manufacturing processes there is no viable replacement for helium for cooling wafers.
Outside chips, helium’s uses also span medical imaging and space operations. The medical industry uses helium to cool superconducting magnets that power magnetic resonance imaging machines. The space industry uses helium to purge rocket fuel tanks, and the demand is expected to grow as more frequent launches by companies such as SpaceX and Blue Origin increase the need for reliable ground and vehicle systems.
At the same time, experts said the physical logistics of helium can limit how quickly shortages emerge—and then how quickly they can be relieved. Helium is difficult to store and transport because the smallest gaps can let it leak, and it is typically shipped chilled into liquid form in insulated containers. Kornbluth said the specialized containers can store helium for 35 to 48 days, and that any longer starts a warming cycle that lets helium escape through pressure release valves. He said about 200 containers were stuck in the Middle East and estimated they cost about $1 million each, leaving limited redundancy elsewhere and making re-routing and re-filling dependent on relocating those containers out of the region.
Kornbluth said the timeline for the worst part of any shortage could be linked to container repositioning. He said supplies might not run out immediately because containers that would have been filled at the start of March would still have taken several weeks to arrive in Asia, and he said “Nobody’s run out of helium yet,” with the shortage hitting “a few weeks out when the shortage really hits.” He added that the most difficult phase would likely be the initial period when Qatar supply is lost and the industry must “rejig the supply chain and reposition containers.”
The broader impact is being watched most closely in Asia’s semiconductor hub, where demand has surged amid the AI boom. Fitch Ratings said in a report this week that South Korea is particularly vulnerable because it imports about 65% of its helium from Qatar, and Lee said manufacturers will need to accelerate efforts to secure alternative sources if the conflict continues. The Korea Semiconductor Industry Association said short-term supplies are sufficient and companies are diversifying supply routes, and Samsung Electronics and SK Hynix declined to comment on inventory or plans. Taiwan Semiconductor Manufacturing Company said it does not “anticipate any significant impact at this time” but would continue monitoring the situation.
In the helium industry, experts said a full-blown crisis is unlikely because suppliers would allocate limited supplies based on importance and because helium is a small part of a semiconductor’s overall production cost. Feldgoise said that in the event of a shortage, chip fabs would likely pay higher prices to secure supplies, while Kornbluth said critical industries like chipmaking and medical would be prioritized in allocation decisions.
Quotations and reporting in the account trace to the Associated Press reporting and analysis, with AP writers in Seoul, Hong Kong and Kuala Lumpur contributing.