China Blocks Helium Exports Amid Iran War Disruption

China has temporarily halted helium exports, a critical element used in semiconductor fabrication, as the escalating Iran war disrupts global helium supply chains. This compounds existing supply pressure from the Iran conflict and threatens chipmakers dependent on helium for lithography and wafer cleaning processes.

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Helium is a non-substitutable input in semiconductor manufacturing, used in lithography, wafer cooling, and fiber optic production. A Chinese export block — even temporary — combined with Iran-war-related supply disruption creates a dual-source squeeze on a market with few alternative suppliers. Chipmakers and fabs face potential production slowdowns if helium inventories are drawn down faster than alternative sources can fill the gap. This is structurally negative for foundries and memory makers in the near term, while potentially benefiting alternative helium producers in the US, Qatar, and Russia. The event also reinforces the strategic case for helium supply diversification as a national security concern.