A report from Moody's Ratings claims that disruptions to the supply of helium as a result of conflict in the Middle East are expected to cause disruptions across semiconductor manufacturing, which will ultimately impact AI and data center supply chains.

At present, Qatar accounts for roughly 30 percent of global high-purity helium, which it collects as a byproduct of natural gas production. However, the report noted that attacks on the country’s industrial hub are likely to result in helium supplier Air Liquide SA being unable to fulfill contracts in the coming months.

Consequently, the report said that while chipmakers in Asia, including Samsung and SK Hynix, have enough helium stocks to last until June, companies in the region are now paying a premium to secure inventory from US-based suppliers. There is also the added complication that helium is very difficult to transport and can only be stored in specialized containers for 45 days before it starts to degrade.

Although a ceasefire agreement is currently in place, Moody’s notes that while reopening the Strait of Hormuz would provide some relief to the supply of some hydrocarbons and chemicals, helium production in Qatar will not restart immediately.

The current situation is in direct contrast to last year, when worldwide supply exceeded demand – approximately 170 million cubic meters of helium were required in 2025, with 184 million cubic meters being produced, Moody’s stated. Prior to the conflict, this surplus was expected to remain in place for several years, with demand forecast to grow more slowly than the pace of new supply.

Helium is used by chipmakers in a number of different processes and has become increasingly necessary for advanced semiconductor manufacturing, where it is used as a coolant in extreme ultraviolet (EUV) lithography. Furthermore, as the demand for high-powered chips continues to grow, IDTechEx has separately reported that helium use in chip manufacturing could increase 5x by 2035.

Moody’s outlined a number of ways that semiconductor companies can temporarily mitigate the risk, including recycling, priority allocation, inventory management, process optimization, and sourcing alternative suppliers.

It went on to note that while prolonged disruption in Qatar will impact the chip industry, it is not the first time the sector has been forced to manage supply chain challenges. The report said four previous helium-specific shocks have occurred over the last two decades, with chipmakers having also contended with the Covid-19 pandemic, substrate shortages, and neon gas supply disruptions in 2022 linked to the war in Ukraine in recent years.