A Helium Shortage Is About to Hit the Chip Industry. Here’s Why That’s a Huge Problem.

Chip makers have a big problem they can’t manufacture their way out of. When Iran struck Qatar’s largest liquefied natural gas facility last week, it damaged helium production lines that could take years to rebuild, according to the New York Times. Qatar produces roughly a third of the world’s helium supply, and that output is now offline.

Without helium, leading chip makers including TSMC, Samsung and SK Hynix could struggle to keep production running. Helium cools superconducting magnets during chip manufacturing and flushes toxic residue after wafers are washed. The gas is irreplaceable for making chips that power iPhones and Nvidia’s AI servers.

Outside of chip manufacturing, helium, the coldest liquid on Earth, has many uses, including cooling MRI machines. A shortage could impact everything from scientific research to space travel, says the Times.

About 200 specialized containers used to transport helium were stranded in the Strait of Hormuz when the war began. Repositioning them could take months. When helium runs short, it goes to whoever can pay the most — and chip makers will outbid anyone.