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Iran crisis could disrupt supply of key chipmaking materials, South Korea warns
South Korea’s chip industry, supplying two-thirds of global memory chips, warns Iran conflict risks helium shortages and higher energy costs amid rising AI chip demand, lawmaker Kim Young-bae said.
- On March 5, 2026, Kim Young-bae, a South Korean ruling party lawmaker, warned the US-Israel war with Iran could disrupt critical semiconductor material supplies, raising energy and production costs for South Korea's chip industry.
- South Korea's industry ministry noted dependence on 14 Middle East-sourced items, including helium, bromine, and chip inspection equipment, which are produced in a limited number of countries, including Qatar.
- About 3,200 ships are idle inside the Persian Gulf and about 500 wait outside UAE and Oman ports, while closed airspace and detours around Africa disrupt Suez Canal and Red Sea transit.
- Officials warned the crisis could slow big tech plans to build AI data centres in the Middle East, which may raise energy and material costs, impacting semiconductor competitiveness.
- Chipmakers have prepared for supply shocks, with ASML cutting neon use and SK Hynix diversifying suppliers and stockpiling, to limit current impact.
23 Articles
23 Articles
The war between the U.S. and Israel against Iran could lead to interruptions in supplying essential materials for semiconductor production, said a member of the South Korean government party, Kim Yong-bae, after a...
Chip Industry on Alert as Middle East Conflict Risks Disrupting Supply Chains
The escalating conflict involving the United States, Israel, and Iran could disrupt the supply of critical materials used in semiconductor manufacturing, Kim Young-bae, a South Korean ruling party lawmaker, warned on Thursday as fighting in the Middle East entered its sixth day. Kim Young-bae said concerns were raised during a meeting with executives from major technology companies and industry groups, including Samsung Electronics, about the po…
Iran crisis could disrupt supply of key chipmaking materials, South Korea warns
The U.S.-Israel war with Iran could disrupt supplies of key semiconductor manufacturing materials, a South Korean ruling party lawmaker said on Thursday, as the conflict in the Middle East entered its sixth day.
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