[US-Iran War] War Fallout Reaches Semiconductors... 98% of Bromine Imports Come from Israel

Essential for Semiconductor Circuit Manufacturing

Prolonged Crisis Could Cause Transportation Disruptions and Production Delays

Helium, a Byproduct of LNG Production

65% Sourced from Qatar Now at Risk

The aftermath of military clashes between the United States and Iran is increasing uncertainty in the semiconductor industry supply chain. If the blockade of the Strait of Hormuz becomes prolonged, concerns have been raised that the supply and logistics costs of key industrial raw materials such as bromine and helium could be affected, potentially burdening production schedules and price competitiveness. However, the industry maintains that, for now, there are no immediate problems with the procurement of key semiconductor materials due to diversified supply chains.

According to the Korea International Trade Association on March 6, last year, South Korea's dependence on Israel for bromine imports reached 97.5%, which is virtually the entire amount. Bromine is used in processes for drawing semiconductor circuits and removing unnecessary parts. If the Middle East crisis is prolonged, the continuing trend of high oil prices and high exchange rates could cause a sharp rise in air logistics costs, leading to disruptions in bromine transportation and subsequent production schedule delays.

Helium, which is used for cooling lithography equipment and wafer leak testing, is also a pressing issue. Since helium is a byproduct of liquefied natural gas production, 64.7% is sourced from Qatar, a major natural gas producer. The United States (28.5%) and Russia (5.1%) follow. In 2019, when Qatar's helium exports became unstable due to diplomatic conflicts with neighboring countries, South Korea also experienced supply disruptions.

There are also concerns that global semiconductor equipment companies located in Rehovot, south of Tel Aviv—the capital of Israel—could be damaged by Iran's missile attacks. Semiconductor measurement and inspection equipment for Samsung Electronics and SK Hynix plants is also produced there. In addition, data center projects underway in Middle Eastern countries may be delayed or halted, with Saudi Arabia and the United Arab Emirates (UAE) being representative examples.

The industry expects that there will be no significant disruptions in the short-term supply. They explain that the impact is currently limited due to a diversified supply chain. However, if the Middle East crisis is prolonged, uncertainty around production schedules and other factors could increase. A semiconductor industry official said, "We have secured multiple supply sources for some time, so it is not an urgent situation," but added, "If the Middle East crisis continues, we will be closely monitoring the situation as air freight costs and oil prices rise."

This content was produced with the assistance of AI translation services.