Iran crisis could disrupt supply of key chipmaking materials, South Korea warns

SEOUL: The US-Israel war with Iran could disrupt supplies of key semiconductor manufacturing materials, a South Korean ruling party lawmaker said on Tuesday (Mar 3), as the conflict in the Middle East entered its s

SEOUL: The US-Israel war with Iran could disrupt supplies of key semiconductor manufacturing materials, a South Korean ruling party lawmaker said on Tuesday (Mar 3), as the conflict in the Middle East entered its sixth day. 

South Korea's chip industry, which supplies around two-thirds of the global memory chips, is also concerned that a prolonged conflict in Iran will lead to higher energy costs and prices, Kim Young-bae said after meeting with executives from companies such as Samsung Electronics and trade groups. 

"Officials raised a possibility that semiconductor production could be disrupted if some of these key materials cannot be sourced from the Middle East," he said at a briefing with reporters, adding South Korean firms source some key chip-making materials such as helium from the Middle East.

Helium is essential for heat management during semiconductor production and it has no viable alternatives currently. It is only produced in a handful of countries, with Qatar and the US among the leading players in the industry.