Memory prices could leap even higher as the supply of helium, crucial to making chips, is now impacted by the conflict in the Middle East
Ask any PC enthusiast to make a list of all the materials that chip makers need to make the latest processors, GPUs, DRAM and flash modules, and you'll probably be given a pretty good breakdown of everything required. However, they might not expect helium to be so critical to it all, and it turns out that the current situation in the Middle East is likely to seriously impact the crucial supply of it.This comes from Jukan on X, an analyst at Citrini, who has reported that major chip manufacturers, such as Samsung and SK hynix, are having to look at other ways of sourcing helium. This gas is used to flush out any other gases inside the wafer fabrication systems, and naturally, it needs to be extremely pure.
"No Helium, No Semiconductors" — Samsung, SK Hynix on High AlertAs global logistics tensions escalate in the wake of the Iran crisis, South Korea's semiconductor industry is facing supply instability for helium gas, a critical process material. Ships transporting helium have… pic.twitter.com/rrhGqgmrtLMarch 11, 2026
More importantly, though, helium is a byproduct of the production of liquified natural gas, so the biggest suppliers of LNG also happen to be the biggest suppliers of helium. In the case of South Korea's semiconductor industry, Jukan reports that 64% of last year's imports came from one country: Qatar.A cursory glance at any map to see just exactly where Qatar is located will highlight you to the problem at hand. Across the Persian Gulf, directly opposite Qatar, is Iran, and with the Strait of Hormuz practically closed to all shipping, South Korea's most significant supply of helium has suddenly dried up.Globally, the largest producer of helium in the world is America, and while it could possibly meet the sudden demand for the elusive gas, getting hold of sufficient quantities at such short notice isn't going to be easy. Chip firms could turn to Russia, another large producer of helium, but transactions with that country are far from simple.While a sudden halt to the production of computer and memory chips is unlikely, the fact that semiconductors are in such high demand from the AI market, with hundreds of billions of dollars behind it, means that Samsung, SK hynix, TSMC, and others may possibly reduce production of less-profitable chips to ensure that their biggest orders are fulfilled in time.All of which goes to suggest that if the situation in Iran continues for some time, we could see an even bigger shortage of crucial PC components. If you think DRAM is expensive right now, you could be in for an almighty shock in a few months.