The helium supply is running low due to the blockade of the Strait of Hormuz and Iranian strikes on the Qatari site of Ras Laffan. This poses a problem for the semiconductor industry, which needs this gas to produce its components. At the other end of the chain, consumer electronics and cars are at risk of being impacted.
Published on 29/03/2026 at 17:25, Reading Time: 3min
When discussing the economic consequences of the Middle East war, oil and gas take center stage. However, another raw material is also affected and it is strategic: helium. Your smartphone, computer, and car all require semiconductors (electronic chips) to function, and this sector is currently being affected by the ongoing conflict. To produce these chips, helium is needed, a gaseous substance used to cool silicon disks, an essential step in the manufacturing process.
Helium is a byproduct of natural gas and is partly manufactured in Qatar: the Emirate usually supplies a third of the global helium supply. However, the current conflict has disrupted this production. Iranian strikes on the Qatari site of Ras Laffan, the world’s largest liquefied natural gas (LNG) complex, have caused significant damage. Production has been interrupted, and it will take three to five years of work to restore normal operation, as stated by the QatarEnergy public company, which cited a force majeure event to justify not honoring signed contracts with its customers. The transportation of potential production is also affected by the blockade of the Strait of Hormuz, where helium shipments pass through to reach the large semiconductor factories in Asia.
This situation has led to a worldwide helium shortage, as quoted by the French group Air Liquide. This has put the semiconductor sector on high alert, especially for the Taiwanese giant TSMC, whose main clients are American giants Apple and Nvidia. Prices have surged by at least 40%, but the industry is currently operating based on existing capacities. Yet, if the crisis continues, it will likely cause production delays for smartphones, computers, gaming consoles, cars, leading to price hikes. The medical imaging sector, which also consumes helium, is also impacted.
This shortage highlights the importance of diversifying supply sources. Apart from Qatar, other helium-producing countries include the United States, the largest global supplier, and Algeria. Russia also plays a significant role, but European sanctions limit its potential as a reliable source.
The production of helium relies on countries that can face challenges. As early as 2023, the American Semiconductor Industry Association had pointed out the fragility of this strategic resource, concentrated in countries with geopolitical risks.
