Iran Crisis Could Disrupt Global Chip Supply, South Korea Warns

The Iran crisis could disrupt the supply of important materials used in semiconductor manufacturing, South Korean officials warned on Thursday.

A ruling party lawmaker in South Korea said the ongoing conflict involving the United States, Israel, and Iran may affect global chip production if supply chains are interrupted.

South Korea’s Chip Sector on Alert

South Korea produces about two-thirds of the world’s memory chips. Because of this, any impact from the Iran crisis could affect global technology industries.

Lawmaker Kim Young-bae raised the concern after meeting executives from major chip companies, including Samsung Electronics and industry trade groups.

He said companies warned that semiconductor production may face problems if materials sourced from the Middle East become unavailable.

Helium Supply a Key Concern

One of the most important materials mentioned was helium. The gas is used to manage heat during chip manufacturing.

There is currently no effective alternative to helium for this process. Only a few countries produce it in large quantities, including Qatar and the United States.

Because some supplies come from the Middle East, the Iran crisis could create risks for chip production if the conflict continues.

Chip Demand Already Facing Pressure

The semiconductor industry is already facing supply pressure. Demand for advanced chips has increased because of artificial intelligence data centres.

These facilities require large numbers of powerful chips to run modern AI services. As a result, supply shortages have affected industries such as smartphones, laptops, and automobiles.

Companies Monitoring the Situation

South Korean chipmaker SK Hynix said it currently has enough helium inventory and does not expect immediate disruption.

Meanwhile, GlobalFoundries stated that it is closely monitoring developments in the Middle East and remains in contact with suppliers and partners.

Samsung Electronics declined to comment on the situation.

Possible Impact on AI Data Centres

According to Kim Young-bae, the Iran crisis could also affect long-term plans by major technology companies to build artificial intelligence data centres in the Middle East.

Recently, Amazon reported that some of its data centres in the United Arab Emirates and Bahrain were damaged by drone strikes.

Technology companies such as Microsoft and Nvidia have been investing in the region to support growing demand for artificial intelligence services.

However, continued instability linked to the Iran crisis may slow those plans and affect global chip demand in the future.