TECH NEWS – Helium and bromine sourced from the Persian Gulf are critical to chipmaking – a prolonged conflict could trigger a 90–100% surge in memory prices.

South Korea, which supplies roughly two-thirds of the world’s memory chips, is growing increasingly concerned about the impact of the ongoing Middle East conflict on the semiconductor supply chain, according to a new Reuters report. Two key materials used in chipmaking — helium and bromine — are predominantly sourced from the Persian Gulf region. Helium is used to maintain stable cooling conditions in fabrication facilities, while bromine is used to etch circuits onto silicon wafers. A disruption to either supply would directly threaten memory chip production.

The world’s leading memory manufacturers — Samsung, SK Hynix, and Micron — are closely monitoring the situation. SK Hynix has reportedly secured adequate stockpiles for now, but the same cannot be said for Samsung and other producers. Rising energy costs, logistical disruptions, and difficulties sourcing industrial gases could collectively destabilize the market, quickly translating into higher prices and reduced production volumes.

Industry forecasts suggest a significant price hike could arrive as early as next month, with memory prices expected to rise between 90% and 100% depending on the type and module in question. This would directly affect the markets for PCs, laptops, and consoles, all of which are already under considerable pricing pressure.

The situation is further complicated by the fact that the Middle East has emerged in recent years as a major destination for data center investment and AI infrastructure, with the United Arab Emirates and Saudi Arabia actively courting such projects. A prolonged conflict could put these initiatives at risk: some contracts may be terminated on force majeure grounds, which could partially offset supply pressures by reducing demand. However, if the crisis leads to a broader withdrawal of industry from the region, it could also make securing the raw materials needed for chipmaking persistently more difficult.

Companies are working to build up inventories and diversify supply chains, but time is running short. If the Middle East situation does not stabilize, memory supply for PCs, laptops, consoles, and AI infrastructure alike could face serious disruption.

Source: Tech4Gamers