GoKawiilThe Taiwan Semiconductor Industry Association (TSIA) has called on the government to build a strategic supply of helium and liquified natural gas (LNG) just as the U.S. and Iran signed a two-week ceasefire agreement in the Middle East. According to Nikkei Asia, TSIA is calling on Taipei to follow in the footsteps of Japan and the U.S.A. and build a strategic inventory of these supplies, which are critical for the semiconductor industry. The island currently has about 11 days of strategic LNG supplies, which is the fuel used by more than 40% of its power plants, and no helium stockpiles.
Iran blockaded the Strait of Hormuz when the U.S. began its bombing campaign against the country in March of this year, disrupting the flow of several materials, like Aluminum, helium, and LNG, that are key to the global semiconductor supply chain. While TSIA members had enough short-term inventory to tide them over for a few weeks, it was already starting to face shortages by the third week of the war. Helium is used across the various stages of chip manufacturing, from cooling to chemical flushing, and has no other viable substitute. This means that without this gas, production in semiconductor fabs would grind to a halt.
Aside from calling on the government to build a larger strategic supply, TSIA also said that Taiwan must diversify its sources of energy and resources. “We also propose to the government that we need to keep diversifying sources of energy and critical materials supplies to prepare for the uncertainties,” TSIA chairperson and Taiwan Semiconductor Manufacturing Company (TSMC) senior vice president Cliff Hou said. “The association also supports the government's decision to reopen nuclear power plants to have more stable energy supplies if the processes meet legal requirements and if safety is guaranteed. Stable and sufficient energy is extremely vital for semiconductor industry development.”
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Taiwan shut down its last nuclear power plant in May 2025 and now relies on imports for over 95% of its energy needs. With the island receiving nearly a third of its LNG needs from Qatar, the blockade of the Strait of Hormuz has severely crippled one major energy source for the island, revealing the need for an alternative power source that does not heavily rely on imports.
The U.S. and Iran have just announced a two-week conditional ceasefire deal that hinges on the reopening of the Strait of Hormuz. This would reduce the pressure on Taiwan’s semiconductor industry, especially as ships carrying the resources that it needs can now continue their journey towards the island. However, that does not mean that the supply chain would return to pre-war levels, especially as QatarEnergy’s Ras Laffan Industrial City has suffered extensive damage from direct strikes, affecting its output. Furthermore, the ceasefire announcement is just a temporary two-week deal — until the two parties reach an agreement for lasting peace in the region, there is always the threat of another conflict arising in the area and disrupting global supply chains once more.
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