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Helium Crunch From Hormuz Standoff Threatens AI Chipmaking

Supplier rationing is forcing buyers to seek costlier stopgaps.

Overview

  • Iranian Revolutionary Guard restrictions in the Strait of Hormuz have choked off Qatari shipments of helium, which supplies roughly a third of the world market.
  • QatarEnergy expects helium exports to fall by about 17%, and it says repairing damaged capacity could take three to five years even if fighting stops.
  • Distributors have triggered emergency measures, with Airgas declaring force majeure and several leading suppliers telling customers they will receive only part of their contracted volumes.
  • Major chipmakers are scrambling for short-term supply, shifting orders toward U.S. producers, paying higher prices, and facing possible production cuts as spot cargoes get bid up.
  • Helium has no easy substitute in chip fabrication or MRI machines because it provides an inert atmosphere and rapid cooling, and analysts warn the shortfall could reach about 30% for months.