Iran war could disrupt supply of semiconductor materials, South Korea warns
Global News
South Korea's chip industry, which supplies around two-thirds of global memory chips, is also concerned that a prolonged conflict in Iran will lead to higher energy costs.
The U.S.-Israel war with Iran could disrupt supplies of key semiconductor manufacturing materials, a South Korean ruling party lawmaker said on Thursday, as the conflict in the Middle East entered its sixth day.
South Korea’s chip industry, which supplies around two-thirds of 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 005930.KS 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, giving helium as one example.
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 among the leading players in the industry.
The warnings come as chipmakers grapple with severe supply bottlenecks due to surging chip demand from AI data centre operators that has tightened supplies to many other industries, including smartphones, laptops and automobiles.
South Korean chipmaker SK Hynix 000660.KS said in a statement it has “long secured diverse supply chains and sufficient inventory” of helium, “therefore there is almost no chance that the company will be affected.”
Samsung declined to comment.
Taiwan’s TSMC 2330.TW said in a statement that it did not anticipate any significant impact currently, and will continue monitoring the situation closely.
The four died Sunday when a drone hit a command center in Port Shuaiba, Kuwait, just a day after the U.S. and Israel launched its military campaign against Iran.
The Iran conflict continues to roil global markets but gold isn't shining so brightly right now, even though many have long considered it a safe haven during a crisis.
U.S. President Donald Trump and his administration have offered shifting explanations for why the war is necessary — and what the endgame is.
Their silence came amid coordinated U.S.-Israeli airstrikes on Iran that killed the country's Supreme Leader, Ayatollah Ali Khamenei, and other high-ranking officials.
Major airlines have canceled flights to and from the region, and airspace across the Gulf is closed as the U.S. and Israel's war with Iran continues.
Government officials are warning that the escalating conflict between Iran, the U.S. and Israel is raising the risk of cyber attacks against critical networks in Canada.
The conflict, which appears to be spreading to other parts of the region, has reportedly killed hundreds, disrupted global air travel and sent oil prices skyrocketing.
U.S. President Donald Trump says the conflict in Iran is projected to go on for another 'four to five weeks, but we have capability to go far longer than that.'
It will be the first time France increases its nuclear arsenal since at least 1992. France is also the only nuclear power in the European Union.
The number is based on voluntary self-registration by Canadians with Global Affairs Canada as of Sunday, which means the actual number may be higher.
While questions are being raised about whether a regime change is possible in Iran, experts say attacks by Iran on Israel are likely to continue in the days to come.
Canadians visiting and living in several Middle East countries are dealing with various emotions as Iran fires missiles in retaliation for the U.S. and Israel's bombardment.
Iranian Canadians gathered in various cities across the country this weekend celebrating recent strikes in Iran by the U.S. targeting 'imminent threats from the Iranian regime.'