A prolonged conflict in the Middle East could negatively affect the semiconductor market due to a shortage of helium, the international rating agency Fitch warned.
„Interruptions in gas production in Qatar are leading to a shortage of helium, a by-product of gas production used in semiconductor manufacturing and medical imaging. Precautionary buying driven by fear only exacerbates the shortage. Helium is produced during the extraction and liquefaction of natural gas, so any interruption in gas production could quickly cause panic and push buyers to the spot market“, Fitch said in a statement.
The agency noted that even if Qatari facilities resume gas production, the helium shortage may not be resolved quickly. Fitch experts believe that South Korea would be most vulnerable in such a situation. Last year, 64.7% of its helium imports came from Qatar. “Taiwan faces similar risks as it relies on Qatar for the majority of its helium. Finding alternative sources of supply will be difficult in the short term,“ the agency notes.