Helium and Bromine Run Out First: 5 Shocks the South Korean Government's Semiconductor Material Supply Warning to Samsung & SK Hynix on Day 6 of the Iran War Poses for Chip Prices and AI Infrastructure
On March 5, Day 6 of the Iran War, a South Korean ruling party lawmaker officially warned semiconductor companies including Samsung Electronics and SK Hynix of potential supply disruptions for key Middle Eastern materials (helium, bromine) and the risk of soaring energy costs. SK Hynix responded immediately with 'sufficient inventory,' but if the war drags on, rising chip prices and delays in Middle Eastern AI data center construction remain serious concerns.
🚨 Why you need to read this now: The Iran War has moved beyond a Middle Eastern energy crisis to directly threatening South Korea's semiconductor supply chain. Samsung and SK Hynix are holding the line — but the longer the war goes on, the harder it becomes to avoid chip price hikes and AI infrastructure delays.
TL;DR
- On March 5, 2026, South Korean ruling party lawmaker Kim Young-bae issued an official warning after emergency meetings with executives from Samsung Electronics, SK Hynix, and other chipmakers
- Key semiconductor materials helium and bromine are significantly sourced from the Middle East, raising supply disruption concerns
- Soaring energy costs → rising chip manufacturing costs → potential chip price hike domino effect
- Middle East Big Tech AI data center construction plans at risk of delay → medium-to-long-term semiconductor demand slowdown
- SK Hynix official statement: "We hold sufficient helium inventory; no immediate procurement disruption"
📌 The Facts: What Happened
On Thursday, March 5, South Korean ruling party lawmaker Kim Young-bae held emergency meetings with executives from Samsung Electronics, SK Hynix, other semiconductor industry leaders, and trade associations, then issued an official warning about the Iran War's potential impact on South Korea's semiconductor supply chain.
Three major areas of concern were identified:
① Critical Material Supply Risk
A portion of helium (He) and bromine (Br) — both essential to semiconductor manufacturing — is sourced from the Middle East, and the Iran War could destabilize those supply chains. Helium is used as a coolant during heat treatment and etching in semiconductor processes, while bromine is used in process chemicals such as etching gas.
② Soaring Energy Costs
As oil prices surge amid Strait of Hormuz tensions, operating costs for power-intensive semiconductor fabs could rise significantly — directly impacting the cost per wafer.
③ Middle East AI Data Center Plans at Risk
If large-scale AI data center construction projects pursued by Gulf states like Saudi Arabia and the UAE are delayed or cancelled due to the war, growth in demand for HBM (High Bandwidth Memory) could also stall.
🔥 Spread Mechanism: Why This Surfaced Now
The reasons this issue erupted on March 5 are layered:
- The shockwave from KOSPI's record-breaking crash (3/4) — Samsung Electronics (-6.05%) and SK Hynix (-5.32%) both plummeted, shifting the conversation from mere investor sentiment to real supply chain risk.
- Day 6 of the Iran War — As hopes for a quick end to the conflict faded and a prolonged scenario became reality, supply chain reviews became unavoidable.
- Government and ruling party's preemptive warning — The issue escalated from market observation to an official briefing, prompting simultaneous coverage by global outlets including Reuters, Yahoo Finance, and Times of India.
🌐 Context & Background: Korea's Hidden Dependency on the Middle East
It's not widely known how much South Korea's semiconductor industry depends on the Middle East.
| Material | Key Suppliers | Semiconductor Process Use |
|---|---|---|
| Helium (He) | Qatar, Algeria, Russia | Ion implantation, cooling, lithography |
| Bromine (Br) | Jordan, Israel | Etching gas (HBr), cleaning |
| Neon (Ne) | Ukraine (Middle East share rising post-war) | Excimer laser |
Qatar accounts for approximately 30% of global helium supply. If the Iran War spreads to Qatar and the UAE, or if Hormuz logistics remain paralyzed long-term, helium supply would be directly impacted.
Additionally, the Middle East AI data center boom was a core growth driver for HBM3 and HBM3E demand in 2025–2026. Projects such as the Saudi Aramco–Microsoft joint data center and the UAE ADNOC–NVIDIA project were all under consideration — but if the war drags on, these investments could be frozen.
📈 Outlook: How Long Could This Last?
Short-term (1–4 weeks): As SK Hynix noted, current inventory levels are stable. The likelihood of an immediate production disruption is low.
Medium-term (1–3 months): If the Iran War prolongs, spot prices for helium and bromine will rise, increasing cost pressure on Samsung and SK Hynix. The point at which rising energy costs begin to be reflected in chip prices is expected to be Q2 or later.
Long-term (3+ months): If Middle East AI data center investment delays are confirmed, a downward revision in HBM demand forecasts becomes unavoidable — potentially affecting both companies' H2 2026 earnings guidance.
✅ Checklist: 5 Things Investors & Industry Stakeholders Should Watch
🔗 References
- Reuters — Iran crisis could disrupt supply of key chipmaking materials, South Korea warns (2026.03.05)
- Yahoo Finance — South Korean chip industry worried Iran crisis to disrupt raw material supply, boost chip prices
- Times of India — South Korea sends 'Iran warning' to Samsung and other chipmakers
- Chosun Biz English — Iran tensions drag Korea chip giants Samsung and SK hynix sharply lower
Image source: Czochralski Process — Wikimedia Commons (Public Domain)