TAIPEI (TVBS News) — Taiwan's semiconductor industry has called on the government to build strategic helium and liquefied natural gas stockpiles, a demand that coincided with a two-week U.S.-Iran ceasefire announcement. The Taiwan Semiconductor Industry Association (TSIA, 台灣半導體產業協會) said Wednesday (April 8) the six-week Middle East conflict exposed critical supply chain vulnerabilities. Member companies began facing shortages by the third week of the war, the association said.
The conditional ceasefire hinges on the reopening of the Strait of Hormuz, the narrow waterway that Iran blockaded when the U.S. began its bombing campaign against the country in March. The strait's closure trapped roughly one-third of the world's commercial helium supply. It also disrupted shipments of LNG critical to Taiwan's power generation, according to industry analysts.
TSIA chairperson Cliff Hou (侯永清), who also serves as TSMC senior vice president, told Nikkei Asia the government should keep diversifying sources of energy and critical materials supplies to prepare for uncertainties. TSIA executive director Wu Chih-yi (吳志毅) also recommended establishing helium reserves similar to oil strategic reserves to strengthen supply chain resilience. Taiwan currently maintains about 11 days of strategic LNG supplies and no helium stockpiles.
The two-week truce offers only temporary relief. QatarEnergy reported "extensive damage" to its Ras Laffan LNG facility, the world's largest, following Iranian attacks in mid-March. Helium is extracted as a byproduct during natural gas processing at the facility, meaning the damage directly affects helium production. The company said repairs could take up to five years, meaning the global helium shortage could outlast any peace agreement.
Phil Kornbluth, president of Kornbluth Helium Consulting and a former gas industry executive, told The New York Times that a supply crisis was approaching but had not yet reached end users. He estimated the net global helium shortage at around 15%, after accounting for pre-war oversupply that partially offset the loss of Qatari production.
South Korea faces even greater exposure than Taiwan, according to Fitch Ratings. The country sourced approximately 65% of its helium imports from Qatar last year. Samsung Electronics and SK Hynix, the world's largest memory chip manufacturers, declined to comment on their inventory levels or diversification plans when contacted by The New York Times.
Taiwan's Ministry of Economic Affairs (MOEA, 經濟部) said in late March that helium supplies remained stable, with alternative imports available from the United States. National Science and Technology Council (NSTC, 國科會) Minister Wu Cheng-wen (吳誠文) said Wednesday that energy supplies would be secure through the end of May. The government has also developed new import plans for June and alternative solutions for specialty gas materials, Wu said.
TSIA expressed support for reopening Taiwan's nuclear power plants. Hou said the semiconductor industry would back the government's nuclear restart if safety concerns are addressed and legal requirements are met. Taiwan shut down its last nuclear power plant in May 2025 and now relies on imports for more than 95% of its energy needs.
Helium spot prices have doubled since the crisis began in late February, according to Kornbluth. AirGas, a subsidiary of French industrial gases group Air Liquide, is one of the largest packaged gas distributors in the United States. The company announced it would cut helium supply to some customers by 50% and add a surcharge of US$13.50 (around NT$429) per hundred cubic feet.
Industry sources said semiconductor and medical applications typically receive priority during helium shortages. Richard Brook, a former Air Liquide executive and chief executive of Garrison Ventures, a helium consultancy, told The New York Times that chipmakers would pay any price for helium because the cost of shutting down a fabrication plant would be far greater than any supply premium.
The ceasefire's durability remains uncertain, and the threat of renewed conflict will persist until the U.S. and Iran reach a lasting peace agreement. Even if the Strait of Hormuz reopens immediately, Kornbluth estimated the supply disruption would last at least two additional months. Roughly 200 specialized helium containers, worth approximately US$1 million (around NT$31.79 million) each, must be repositioned from the region. ◼ (At time of reporting, US$1 equals approximately NT$31.79)