Rising tensions in the Middle East are adding a new layer of uncertainty to the global semiconductor supply chain, with South Korean lawmakers warning that the escalating U.S.–Iran conflict could disrupt access to critical materials used in chip manufacturing.

Middle East Conflict Raises Chip Supply Concerns

The U.S.-Israel conflict with Iran could threaten supplies of key materials used in semiconductor manufacturing, a South Korean ruling party lawmaker warned as the fighting entered its sixth day.

Lawmakers raised concerns that disruptions in the Middle East supply chain could affect chip production if manufacturers lose access to critical materials such as helium, which plays an essential role in managing heat during semiconductor manufacturing and currently has no viable substitutes.

The warning followed a meeting between officials and executives from companies including Samsung Electronics Co. Ltd. (OTC:SSNLF) and industry groups, Reuters reported on Thursday.

The South Korean chip industry—which produces about two-thirds of the world's memory chips—also fears that a prolonged conflict could increase energy costs and prices, adding further pressure to the sector.

Chipmakers Monitor Supply Chains And Infrastructure Risks

Some companies said they remain prepared.

SK Hynix said it has secured diversified supply chains and sufficient helium inventory.

In contrast, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) said it does not currently expect significant disruption but will continue monitoring the situation.

GlobalFoundries Inc. (NASDAQ:GFS) said it is coordinating with suppliers and partners and has mitigation plans in place.

South Korea's industry ministry added that the country relies on the Middle East for 14 additional items in its chip supply chain, including bromine and chip inspection equipment.

However, many of these can also be sourced domestically or from other markets.

Industry officials also warned that escalating tensions could affect AI data center expansion plans in the Middle East, potentially weakening long-term chip demand.

Amazon.com Inc. (NASDAQ:AMZN) said some of its data centers in the United Arab Emirates and Bahrain were damaged by drone strikes, raising questions about the pace of technology infrastructure growth in the region.

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