China's Helium Export Ban Raises Concerns for Global Chip Industry

China's temporary ban on helium exports could disrupt semiconductor manufacturing and artificial intelligence development by tightening supplies of a critical industrial gas, Keith Kohl wrote for Energy and Capital.

Helium is a critical resource used in advanced semiconductor manufacturing and AI chip production.

The article draws a historical comparison to the U.S. Helium Act of 1925, which restricted helium exports because of national security concerns, particularly affecting Germany's airship industry.

According to the report, China's Ministry of Commerce recently issued Announcement No. 29, temporarily restricting helium exports.

Rather than targeting the United States directly, the report argues the move reflects China's efforts to preserve domestic helium supplies for its own semiconductor industry.

China is not the world's largest helium producer, but it imports more than 80% of the helium it consumes.

The report also notes that global helium supplies have tightened following disruptions at Qatar's Ras Laffan facilities, contributing to higher prices.

Helium prices in Northeast Asia reportedly climbed to between $150 and $205 per thousand cubic feet in June, nearly double the levels seen at the end of last year.

Helium plays a critical role in semiconductor manufacturing, including extreme ultraviolet (EUV) lithography, wafer cooling, chemical vapor deposition, and plasma etching.