China Secures Helium Supply for Chip Industry
The Chinese government has officially suspended helium exports as a measure to secure domestic demand amid the resurgence of military conflict in the Middle East. The policy, which took effect on Friday, will tighten global helium supplies, particularly for the semiconductor industry.
The decision was made following escalating tensions in the Middle East, raising concerns about the smooth distribution of helium globally. This rare gas is a crucial component in the chip production process, which is now a key requirement for the artificial intelligence (AI) and electronics industries.
Beijing’s move also reflects the government’s efforts to maintain the availability of strategic raw materials for the national industry. Previously, China had implemented export measures for several key commodities, such as fertilizer, fuel, and sulfuric acid, to prioritize domestic demand.
Earlier this year, conflict between the United States, Israel, and Iran disrupted the international helium supply chain. The impact was felt by various technology companies, including those in China, which is accelerating the development of domestically produced semiconductor and AI industries.
Helium plays a vital role in the chip manufacturing process, as it is used to maintain stable equipment temperatures during production. This gas is also used in various stages of semiconductor manufacturing, from wafer cooling, plasma etching, chemical vapor deposition, atomic layer deposition, and device leak testing.
Despite being a significant player in the helium trade, China remains dependent on foreign supplies. Analysts estimate that more than 85 percent of the country’s helium needs are met through imports.
For the past few years, Qatar has been China’s primary helium supplier, accounting for more than half of total imports. Furthermore, Chinese companies also import helium from Russia before re-exporting some of the volume to various countries, including Europe.
With the implementation of these exports, the global market is expected to face greater supply pressure. This situation has the potential to impact the semiconductor industry in various countries that still rely on the availability of helium to maintain the smooth operation of the chip production process.
