How the the Strait of Hormuz blockade may soon hurt some of the world's biggest technology companies

The chips inside your phones, laptops and other electronic items depend on a gas most people have never thought about. And right now, the world is running out of it. A missile strike on a Qatari industrial facility amid the US-Iran war set off a chain of events that is now threatening the global semiconductor industry.

This crippled the one of only two plants in the world capable of producing helium to the purity standards required for chipmaking, as per a report by Tom’s Hardware.The attack on the facility rendered it offline and removed roughly 30% of the world's semiconductor-grade helium supply from the market. QatarEnergy halted all production at the site two days later, declaring force majeure. The report says that with the Strait of Hormuz effectively closed to Western commercial shipping since the conflict began, helium prices have surged between 40% and 100% even as the semiconductor industry now counting down the weeks until existing stockpiles run dry.

Why Helium matters for chips

Interestingly, Helium does not appear in product specifications or marketing materials when a company launches chip but it is indispensable inside a chip fabrication plant. It has unique properties: chemical inertness (does not readily react to chemicals) and exceptionally low thermal conductivity. These properties make it essential for maintaining the precise conditions required to manufacture semiconductors.

It is used to cool equipment, prevent contamination, and create the stable environments in which the intricate structures of modern chips are built. With a hit on reliable supply, production either slows or stops.

How bad is Helium shortage

Qatar produced approximately 63 million cubic meters of helium in 2025, which is roughly a third of the 190 million cubic meters produced globally, according to the US Geological Survey. QatarEnergy has reported extensive damage to its facilities and announced a 14% annual cut to helium exports.

But with the Strait of Hormuz blockade, the actual disruption is said to be larger than it is expected.According to a report by news agency Reuters, Samsung and South Korean business groups told lawmakers this month that helium and bromine were among the key semiconductor materials most at risk from a prolonged conflict in the region.However, two of the world’s most critical chipmakers – Samsung Electronics and SK Hynix that together supply roughly two-thirds of the world's memory chips – reportedly hold between four and six months of helium inventory. A government official confirmed to Reuters that South Korea has sufficient helium stocks to ride out at least until June, and that companies are paying premiums to secure additional inventory, primarily from the US – currently the world’s largest helium producer. “Price aside, securing the stock right now is the top priority,” the official said.