Closing the Strait of Hormuz Disrupted 30% of the World's Helium. But There's a Silver Lining for 1 AI Chip Stock.
An Iranian missile strike on Qatar's largest natural gas refinery disrupted 30% of the world's helium supply, impacting semiconductor production. Micron Technology, a US-based memory chip producer, is less affected due to its diversified helium sourcing and US-based factories.
Helium is crucial for semiconductor production, particularly for cooling lithographs that etch silicon patterns on wafers. A missile strike on Qatar's Ras Laffan Industrial City damaged 17% of its liquefied natural gas capacity, disrupting 30% of the world's helium supply. The US produces 42.6% of the world's helium, while Qatar produces 33.2%. South Korea, home to Micron's competitors Samsung and SK Hynix, imports 64.7% of its industrial helium from Qatar. Micron, with factories in the US and a deal with Air Liquide to supply helium, is less affected by the shortage. Micron signed a $250 million deal with Air Liquide in 2024 to build a gas production facility in Idaho. As a result, Micron is poised to be the least affected memory producer amid the helium shortage.
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