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Chip Crisis Looms: Helium and Bromine at Risk
13 Mar
Summary
- Helium and bromine, crucial for chip manufacturing, face supply risks.
- Qatar and Israel/Jordan are major global suppliers of these elements.
- A prolonged conflict could disrupt chipmakers' manufacturing operations.
The global semiconductor sector faces potential disruptions to its supply chain due to geopolitical instability. Key materials like helium and bromine, essential for chip manufacturing, are at risk.
Helium is critical for cooling during chip production and in lithography processes. Qatar is a major global supplier, accounting for over a third of the world's helium. A prolonged shutdown in the Strait of Hormuz could remove more than 25% of the global helium supply from the market.
Bromine, another vital element, is used in the etching processes that define circuit patterns on wafers. Israel and Jordan together account for approximately two-thirds of the world's bromine production. While current supply chain impacts appear limited, a protracted conflict could significantly disrupt chipmakers' manufacturing operations, according to industry analysts.
