The Taiwan Semiconductor Industry Association (TSIA) has called on the government to build a strategic supply of helium and liquified natural gas (LNG) just as the U.S. and Iran signed a two-week ceasefire agreement in the Middle East. According to Nikkei Asia, TSIA is calling on Taipei to follow in the footsteps of Japan and the U.S.A. and build a strategic inventory of these supplies, which are critical for the semiconductor industry. The island currently has about 11 days of strategic LNG supplies, which is the fuel used by more than 40% of its power plants, and no helium stockpiles.
Iran blockaded the Strait of Hormuz when the U.S. began its bombing campaign against the country in March of this year, disrupting the flow of several materials, like Aluminum, helium, and LNG, that are key to the global semiconductor supply chain. While TSIA members had enough short-term inventory to tide them over for a few weeks, it was already starting to face shortages by the third week of the war. Helium is used across the various stages of chip manufacturing, from cooling to chemical flushing, and has no other viable substitute. This means that without this gas, production in semiconductor fabs would grind to a halt.
