Since the conflict in Iran began on February 28, coverage has concentrated on oil and gas, but another critical supply risk has emerged: a shortage of ultra-high-purity helium. That gas is essential for advanced semiconductor manufacturing, and a sustained shortfall could slow chip fabrication, disrupt electronics supply chains and force delays or downgrades of datacenter projects.
Why helium matters
Helium, the second-lightest element, has many applications — MRI scanners, optical-fiber manufacture, welding, leak detection, airbags and party balloons. For semiconductors, however, ultra-pure helium plays a unique technical role. It supports ultraclean, ultracold environments, assists energy and heat transfer, and operates vacuum systems and process chambers. In many production steps there is no practical substitute for ultra-high-purity helium; without it, tool performance drops and fabrication can be curtailed or halted.
“Helium is expensive relative to other gases, so, for the most part, where there are substitutes for helium, helium is no longer used,” said Phil Kornbluth, president of Kornbluth Helium Consulting.
Where industrial helium comes from
Although helium exists in the atmosphere, commercial supplies are recovered from natural gas reservoirs during processing. Because helium is typically a byproduct of liquefied natural gas (LNG) production, disruptions to LNG flows directly affect helium availability. A U.S. Geological Survey estimate puts recoverable global helium at about 31.3 billion cubic meters (1.13 trillion cubic feet), with major deposits in Qatar (about 10.1 billion cubic meters), the United States (8.49 billion), Algeria (8.2 billion) and Russia (6.8 billion).
How the conflict has affected supply
After attacks attributed to Iran, QatarEnergy paused much of its LNG output — cutting a major source of helium — and Iran’s actions in the Persian Gulf, including blocking ships from transiting the Strait of Hormuz, have effectively taken a significant share of helium supply offline. Observers estimate that these disruptions have sidelined roughly one-third of global helium flows, though the precise share can shift as shipments and production are adjusted.
Transport and storage limits
Helium handling and transport are specialized. Most helium is shipped as ultra-cold liquid; some moves as compressed gas. While gaseous helium can be stored indefinitely, global storage capacity is limited. Large underground caverns can hold crude helium, but only four privately owned cavern storage facilities exist worldwide — three in Texas and one in Gronau-Epe, Germany. Production-site liquid tanks typically hold only days to a week of output, small relative to demand.
Because of shipping times, customers in Asia and Europe may not feel shortages immediately, but a prolonged blockade or production pause will reduce inventories and push prices higher, said Michael E. Webber, an energy professor at the University of Texas at Austin.
Supply responses and constraints
Switching suppliers or tapping new fields is not simple for semiconductor firms. Much helium is tied up in long-term contracts, and bringing new production online takes months of development and investment. Untapped reserves require time to process and will face intense competition when released.
Demand is rising: global semiconductor sales reached $791 billion in 2025, up 25.6% from the prior year, according to the Semiconductor Industry Association. The SIA has repeatedly warned that helium concentration in geopolitically sensitive regions poses a material supply risk and that sudden shocks could significantly affect chip output.
Recycling and efficiency improvements offer limited immediate relief. Helium recycling technologies remain nascent, and chipmakers already implemented conservation measures after prior supply interruptions, leaving little additional low-cost savings. Kornbluth advises buyers to diversify suppliers and prefer vendors with multiple origin points to reduce vulnerability.
Outlook
The severity and duration of the shortage will depend on how long Qatar’s production is disrupted and how quickly shipping through the Persian Gulf resumes. In the near term, semiconductor manufacturers, datacenter operators and other high-tech users face heightened risk from a scarce, nonrenewable gas whose global flows are closely tied to LNG production and regional geopolitics. Companies and policymakers should monitor inventories, accelerate diversification where feasible, and consider strategic helium reserves or investments in recycling to mitigate future shocks.