tech
March 10, 2026
How the Iran war and rising energy prices are threatening semiconductor demand
A prolonged U.S.-Israel war against Iran could lead to shortages of key chipmaking materials and higher energy costs which could hurt semiconductor demand.
TL;DR
- A prolonged Middle East conflict could disrupt semiconductor manufacturing by impacting the sourcing of key materials like Helium and Bromine.
- Qatar is a major global supplier of helium, essential for chip manufacturing processes such as lithography and heat transfer.
- Disruptions to the Strait of Hormuz shipping route could significantly reduce the global helium supply.
- Israel and Jordan are significant producers of bromine, another critical material for semiconductor manufacturing.
- Rising energy costs, fueled by the conflict, could negatively impact demand for AI-driven semiconductors used in data centers.
- Increased energy expenses may lead hyperscalers to reduce capital spending on AI infrastructure, affecting demand for memory chips.
- While memory chipmakers have current contracts, an extended war could delay AI infrastructure builds and impact prices for other DRAM products.
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