China Bans Helium Exports, Worsening Global Chip Supply Shortage

China announced a temporary ban on helium exports on Friday, a critical gas used in semiconductor manufacturing. The move comes amid escalating conflict in Iran, which has already disrupted global helium supplies and driven prices higher. The Chinese Ministry of Commerce and Customs Authority issued a brief statement declaring the ban effective immediately under China’s foreign trade law, without specifying detailed reasons.

Helium is essential not only for the semiconductor industry but also for medical applications such as cooling MRI machines. Since the outbreak of war in Iran in late February, global helium supply has been strained. China produces only about 15% of its helium needs domestically and imports most of it from Qatar, which supplies roughly one-third of the world’s helium, according to research by consulting firm Trivium China.

Gary Ang, a senior economist at French bank Natixis, explained that China’s export ban aims primarily to secure domestic helium supply amid a very tight global market rather than for political reasons. This step aligns with China’s broader push to enhance self-reliance in chip production and artificial intelligence amid intensifying technological competition with the United States.

Cameron Johnson, a senior partner at consulting firm Tidalwave Solutions, noted that it is unclear when global helium supplies will stabilize. He emphasized that China’s export ban signals a recognition of insufficient helium to meet its own needs. However, Ang added that since China is a relatively small helium exporter, the ban may not cause a major global impact but could still add pressure to the already disrupted supply chain.