Helium shortage yet to hit Singapore's semicon, healthcare sectors, but prolonged disruption may push costs up

## Summary
The manufacturing facilities can provide support across regions if needed, and every critical material has several suppliers to keep operations resilient, said Mr Thomas Tey, senior fab director at UMC Singapore. “For example, while the Iran conflict has tightened global helium supply over the past month, there is currently no impact on our operations as we have diversified sources from different regions,” he said. COSTS, NOT OPERATIONS, AT RISK The impact remains limited and manageable for now, but a prolonged disruption could worsen conditions, said Mr Ang of the Singapore Semiconductor Industry Association. “If the disruption to global helium supply persists, particularly given the concentration of production in regions like Qatar, we could start to see tighter supply conditions and cost pressures emerging over time,” he said. Qatar is Singapore's main source of helium, though the US, Russia and Algeria also produce the gas, Mr Lau said. “Qatar produces a large percentage of global supply; a total shutdown of their exports is difficult to replace instantly,” he said, adding that Singapore relies entirely on imports. Diversified supply and existing inventories can help to cushion the impact, but a sustained disruption could tighten the market and push prices up, said Mr Ang.

## Article Content
The gas is critical for precise temperature control and safe heat removal, said Mr Lau Gih Sheng, a senior lecturer at Republic Polytechnic's School of Engineering. It is also used to detect leaks in vacuum systems and gas pipelines.

American memory chipmaker Micron Technology said its operations are normal and it is monitoring the situation in the Middle East.

“We have diversified sourcing for manufacturing materials, maintained appropriate inventory to support our business and are working closely with suppliers to facilitate uninterrupted supply,” the company said in response to CNA’s queries.

Taiwanese chipmaker United Microelectronics Corporation (UMC) also said its operations have not been significantly affected. The company, which has manufacturing plants in Taiwan, Singapore, China and Japan, said each site has localised procurement and control strategies, with global management oversight.

The manufacturing facilities can provide support across regions if needed, and every critical material has several suppliers to keep operations resilient, said Mr Thomas Tey, senior fab director at UMC Singapore.

“For example, while the Iran conflict has tightened global helium supply over the past month, there is currently no impact on our operations as we have diversified sources from different regions,” he said.

Mr Tey said the company has navigated various geopolitical events before and will adjust its strategies as the situation develops.

COSTS, NOT OPERATIONS, AT RISK

The impact remains limited and manageable for now, but a prolonged disruption could worsen conditions, said Mr Ang of the Singapore Semiconductor Industry Association.

“If the disruption to global helium supply persists, particularly given the concentration of production in regions like Qatar, we could start to see tighter supply conditions and cost pressures emerging over time,” he said.

Alternative sources outside the Middle East exist, but whether they can fully offset a shortfall depends on the duration and severity of the disruption.

Qatar is Singapore's main source of helium, though the US, Russia and Algeria also produce the gas, Mr Lau said.

“Qatar produces a large percentage of global supply; a total shutdown of their exports is difficult to replace instantly,” he said, adding that Singapore relies entirely on imports.

A prolonged shortage could lead to increased costs and pose long-term operational challenges, he said.

Diversified supply and existing inventories can help to cushion the impact, but a sustained disruption could tighten the market and push prices up, said Mr Ang. Rising energy prices are already feeding into manufacturing and logistics costs, and shipping costs have climbed due to higher fuel prices and route risks.

Consumers may see higher costs for electronics, cars and AI-related products, he added.

WHAT CAN BE DONE?

Manufacturing plants may need to prioritise helium use on critical products if the shortage persists, Mr Lau said. Foundries could also capture and reuse up to 90 per cent of the helium used in cooling and leak detection.

“On top of seeking alternative sources outside of Qatar, foundries may capture and reuse upwards of 90 per cent of helium used in cooling and leak detection,” he said.

Mr Ang said helium recycling systems and existing mitigation strategies can be accelerated if needed, but noted that helium has no true substitute for certain critical processes.

“These measures can only partially offset supply constraints,” he said.

He added that the industry is facing pressures rather than disruptions, with the main impact falling on costs rather than operations. The sector has also built up buffers and is more resilient than it was several years ago.

“The key risk is if the situation escalates or becomes prolonged, which could introduce more volatility in both material supply and operating costs,” Mr Ang said.

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- COSTS, NOT OPERATIONS, AT RISK The impact remains limited and manageable for now, but a prolonged disruption could worsen conditions, said Mr Ang of the Singapore Semiconductor Industry Association. “If the disruption to global helium supply persists, particularly given the concentration of production in regions like Qatar, we could start to see tighter supply conditions and cost pressures emerging over time,” he said.
- Qatar is Singapore's main source of helium, though the US, Russia and Algeria also produce the gas, Mr Lau said. “Qatar produces a large percentage of global supply; a total shutdown of their exports is difficult to replace instantly,” he said, adding that Singapore relies entirely on imports.
- The sector has also built up buffers and is more resilient than it was several years ago. “The key risk is if the situation escalates or becomes prolonged, which could introduce more volatility in both material supply and operating costs,” Mr Ang said.

### Implications
- The manufacturing facilities can provide support across regions if needed, and every critical material has several suppliers to keep operations resilient, said Mr Thomas Tey, senior fab director at UMC Singapore. “For example, while the Iran conflict has tightened global helium supply over the past month, there is currently no impact on our operations as we have diversified sources from different regions,” he said.
- Mr Tey said the company has navigated various geopolitical events before and will adjust its strategies as the situation develops.
- COSTS, NOT OPERATIONS, AT RISK The impact remains limited and manageable for now, but a prolonged disruption could worsen conditions, said Mr Ang of the Singapore Semiconductor Industry Association. “If the disruption to global helium supply persists, particularly given the concentration of production in regions like Qatar, we could start to see tighter supply conditions and cost pressures emerging over time,” he said.
- A prolonged shortage could lead to increased costs and pose long-term operational challenges, he said.

### Expert Commentary
This article covers supply, helium, costs topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 600.