Important raw materials for chip cooling! The Strait of Hormuz

# Zhao Ying

Source: Wall Street CN

The Iran conflict has led to the blockade of the Strait of Hormuz, suspending operations at three helium facilities in Qatar. One-third of the global helium supply has abruptly vanished. South Korea relies on Qatar for **64.7% of its helium imports**, while its bromine supply is also highly concentrated in Israel. With both critical semiconductor raw materials in short supply, the Middle East crisis is directly transmitting its costs to every single chip produced.

The blockade of the Strait of Hormuz amid the Iran conflict is pushing a raw material supply crisis directly into the core of the global semiconductor supply chain.

As previously reported by The Wall Street Journal, three helium production facilities in Qatar have halted operations, removing roughly one-third of the global helium supply from the market. Helium is an indispensable material for cooling semiconductor wafers, and **64.7% of South Korea’s helium imports in 2025 came from Qatar**.

The materialization of supply chain risks, combined with international oil prices briefly surging to $111 per barrel intraday, has raised deep concerns in the market over cost pressures and raw material security for the semiconductor industry.

Analysts point out that if the blockade persists, the procurement costs and time pressures faced by relevant companies will rise significantly in the medium term.

## Confirmed helium shortage; bromine risks cannot be ignored

The helium supply shock has shifted from warning to actual supply reduction. According to a March 6 report by The Wall Street Journal, three helium production facilities in Qatar have ceased operations. *C&EN*, a publication under the American Chemical Society, also noted that since the outbreak of the conflict, “one-third of the global helium supply has disappeared from the market” and warned that “if the conflict lasts more than two weeks, the chaos facing helium users could take months to resolve.”

Helium is used for wafer cooling in semiconductor manufacturing and is essential to the production process. Data from the Korea International Trade Association shows that 64.7% of South Korea’s helium imports in 2025 originated from Qatar. With the Strait of Hormuz blocked, maritime transport routes for Qatari helium have also been disrupted, further elevating the risk of supply chain disruption.

Compared with helium, the bromine supply shock has not yet reached a “confirmed” stage, but its highly concentrated import sources are also causing industry alarm. Bromine is used in semiconductor etching processes, and high-purity hydrogen bromide (HBr) is widely applied in polysilicon etching for DRAM and NAND flash memory manufacturing.

**97.5% of South Korea’s bromine imports come from Israel**, making it one of 14 semiconductor supply chain items for which South Korea has high dependence on the Middle East. Bromine is currently categorized as a potential risk factor and remains in a relatively safe zone compared with helium. However, its vulnerability would quickly emerge if the situation escalates further.

## Corporate responses: inventories and diversified supply buy time

Facing supply shocks, South Korean semiconductor companies are relying on pre‑stockpiled inventories and diversified supplier arrangements to secure short‑term buffers. SK Hynix, for instance, not only holds certain helium inventories but has also secured additional supply channels, and has largely moved beyond the scope of near‑term shocks.

Nevertheless, medium‑term risks remain difficult to eliminate. If the shutdown of Qatari gas production and the Strait of Hormuz blockade continue, the cost and time burdens on companies for key raw material procurement will keep accumulating. Even if supplies are not fully cut off, switching to qualified alternative suppliers still takes time.

Based on a comprehensive analysis of public brokerage research reports from March 6 to 9 by the AI investment information platform Epic AI, the Iran conflict is directly impacting the global energy market through the Strait of Hormuz blockade and sharp oil price rises, triggering increased short‑term volatility and rising cost concerns in the semiconductor industry.

Analysts caution that if the conflict becomes prolonged, risks such as delayed data center investments, higher financing costs, and production halts at global factories remain. As an energy importer with high dependence on the Strait of Hormuz, South Korea faces non‑negligible additional pressure.

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