Seoul: South Korea has sufficient helium stocks until at least June, two sources said, while the industry minister ruled out any first-half supply disruptions, allaying worries over the Iran war's impact on supplies of the gas crucial for chipmaking.
Prices of helium, a by-product of natural gas processing, have risen sharply after the U.S.-Israel war on Iran disrupted such operations in Qatar, the world's largest supplier of liquified natural gas (LNG).
But South Korea, home to some of the world's largest chipmakers, including Samsung Electronics and SK Hynix, has enough helium inventory to ride out the first half, a government official told Reuters.
West Asia crisis: Hospitals wary of disruption in helium supplyThe companies are also paying premiums to secure inventory, mainly from top producer the United States, he said, adding, "Price aside, securing the stock right now is the top priority."
The government official and the second source, employed by a helium supplier, declined to be identified as they were not permitted to speak to the media.
Both Samsung and SK declined to comment.
Disruptions in helium supply were unlikely during the first half, Industry Minister Kim Jung-kwan told President Lee Jae Myung during a cabinet meeting on Tuesday, but did not elaborate.
Samsung Electronics and SK Hynix, which supplies roughly two-thirds of the world's memory chips, have four to six months worth of helium inventory, the second source, at a supplier of helium to Samsung, told Reuters.
The supplier sources helium from both the United States and Qatar, cushioning the impact of disruption in the latter, he added.
Qatar, which produces nearly a third of world supply, ranks second after the United States. Iranian attacks on the Gulf state's gas facilities have forced QatarEnergy to declare force majeure to customers.
Last week Taiwan, another key chipmaking base, said its helium supplies were stable. However, some companies in the chip making supply chain have said some impact was starting to be felt on production.
Helium and bromine were among the key semiconductor manufacturing materials at risk of supply disruptions from a prolonged Iran conflict, Samsung and business groups told lawmakers this month, besides higher energy costs.
SK Group Chairman Chey Tae-won also blamed Middle East tension for costlier energy that pushed the group to seek out other energy sources.