Middle East Tensions Raise Concerns Over Korea’s Semiconductor Supply Chain
Rising geopolitical tensions in the Middle East are once again putting global semiconductor supply chains under pressure. Recent reports indicate that South Korea’s chip industry may face increasing risks related to energy and critical raw materials.
If key shipping routes such as the Strait of Hormuz are disrupted, global oil and gas transportation could be affected—impacting the supply of essential materials used in semiconductor manufacturing.
Eight Critical Materials at Risk
The report highlights eight key materials that could become supply bottlenecks:
- Crude oil
- Liquefied natural gas (LNG)
- Naphtha
- Liquefied petroleum gas (LPG)
- Helium
- Bromine
- Aluminum
- Ammonia
Among them, helium and bromine are especially critical:
- Helium is widely used in wafer cooling processes
- Bromine is essential for etching-related chemicals
Both materials have limited substitutes and high dependency on Middle Eastern supply.
High Concentration, Rising Price Volatility
Key data points include:
- Korea relies on Qatar for 64.7% of its helium imports
- Qatar accounts for over 30% of global helium supply
- Spot helium prices have surged by around 50% due to disruptions
Meanwhile, bromine supply is also highly concentrated:
- Dominated by Israel and Jordan
- Korea depends on Israel for 97.5% of imports
This highlights how geopolitical risks can quickly cascade into semiconductor manufacturing.
Short-Term Mitigation vs Long-Term Challenges
South Korea has secured alternative helium supply from the U.S. to stabilize short-term production.
However, long-term concerns remain:
- High upstream concentration
- Ongoing geopolitical uncertainty
- Structural vulnerability in the supply chain
From efficiency-driven supply chains to resilience-focused strategies.
For the electronic components market, this means:
-Multi-sourcing becomes essential
-Regional inventory strategies gain importance
-Demand for in-stock availability increases