China halts helium exports as renewed Middle East tensions threaten chip supplies.

China has suspended helium exports with immediate effect on Friday, seeking to safeguard domestic supplies as renewed fighting in the Middle East raises the risk of fresh disruptions to the global market for the gas, which is essential to semiconductor manufacturing.

The move comes after escalating tensions involving Iran renewed concerns over helium availability, following shortages earlier this year that affected manufacturers worldwide, including companies in China. Helium plays a critical role in semiconductor fabrication, where it is used to cool equipment and support multiple stages of chip production.

The latest restriction appears aimed at ensuring sufficient domestic supply as geopolitical risks threaten global shipments. China remains heavily reliant on imported helium despite exporting limited surplus volumes to neighboring Asian markets.

Imported supplies account for roughly 85% of China’s helium consumption, leaving the country vulnerable to disruptions affecting major overseas producers.

Qatar, one of the world’s largest helium exporters, has supplied more than half of China’s helium imports in recent years. Previous attacks linked to the Iran conflict disrupted exports from the Gulf producer, highlighting the fragility of global supply chains for the gas.

The export suspension follows a series of Chinese restrictions on shipments of strategic materials and industrial commodities designed to prioritize domestic supply during periods of market stress. Beijing has previously imposed export curbs on products including fuel, fertilizers and sulphuric acid.

Helium cannot be produced synthetically on an industrial scale and is primarily extracted from natural gas fields with high helium concentrations. In semiconductor manufacturing, the gas is used for wafer cooling, plasma etching, chemical vapor deposition, atomic layer deposition, lithography support and leak detection.