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Taiwan chipmakers face no raw material shortages, industry says
SEMI Taiwan said Taiwanese chipmakers are not facing imminent shortages of chemicals or raw materials due to the Middle East war but expect material price surges.
The warning followed Qatar’s shutdown of LNG and helium output earlier this month, and Qatar supplies about 33% of global helium.
Helium is used for cooling and inert atmospheres in lithography, etching, and deposition, and the ministry said many firms have been recycling it to reduce dependence on new shipments.
Terry Tsao, president of SEMI Taiwan, said the group is not seriously worried about short-term supply and urged firms to diversify procurement and boost supply chain transparency.
The ministry said local helium supply is sufficient because suppliers have diversified to Australia and the US, but Clark Tseng, a SEMI analyst, said rising material costs will put chipmakers under pressure.
SEMI Taiwan projected global semiconductor revenue would reach US$1 trillion this year and said members flagged supply chain resilience and green energy as key challenges for Taiwan firms.
🔗 Source: Taipei Times
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Implications, context, and why it matters.
Official statements may downplay strain on a fragile global supply chain
- SEMI Taiwan says Taiwanese chipmakers do not face near-term shortages. The halt of Qatar’s liquefied natural gas (LNG) and helium output cuts about 5.2 million cubic metres of helium from the global market each month 1.
- Backup sources cover only part of the gap during a long outage. Russia’s Amur 2 plant plus storage in Germany replace some volume, yet Kornbluth Helium Consulting (a firm that advises companies on helium markets and supply risk) estimates only about half of Qatar’s lost supply can be made up 1.
- Prices jumped after the conflict began. IndexBox’s Aleksandr Romanenko estimated spot prices rose 70% to 100% or more in a short time, while contract prices have mostly stayed flat so far 1.
- Recycling helps, though room to improve may be limited. Leading chipmakers can recover about 80% to 90% of helium, which leaves less space for further gains 2.
Beyond helium, energy constraints could test Taiwan’s chip lead
- SEMI members raised a broader issue around supply chain resilience 3.
- SEMI Taiwan lists supply chain resilience plus green energy as top hurdles for Taiwan firms. Taiwan’s grid still gets over 80% of its power from fossil fuels, while chipmakers have made climate pledges 4.
- Taiwan Semiconductor Manufacturing Co. (TSMC) aims for 100% renewable energy by 2040 and uses about 9% of Taiwan’s electricity 54.
- Rising demand for clean power with slow local supply growth creates long-term risk. Firms may move some production overseas to meet customer requirements 4.
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