China imposes temporary helium export ban amid West Asia conflict, threatening global chip supply
China announced on Friday a temporary export ban on helium, effective immediately, as renewed military conflict in West Asia threatens to trigger shortages of the gas critical for semiconductor manufacturing. The decision comes after earlier shortages caused by the U.S.-Israeli war on Iran disrupted companies globally, including in China, where the artificial intelligence industry increasingly relies on domestic chips.
Helium is essential for heat management in the production of semiconductors, a key component in electronics and AI systems. China, which is 100 per cent import-dependent for helium, faces acute vulnerabilities in industries ranging from healthcare to technology. The export ban is the latest step by Beijing to prevent domestic shortages of critical materials, following similar measures on fuel, fertilisers, and sulphuric acid.
China is also working to boost its domestic chip manufacturing capacity and reduce dependence on advanced Nvidia semiconductors that are subject to U.S. export controls. The helium ban may further strain global supply chains already affected by geopolitical tensions and trade restrictions.
