US-Israel-Iran Conflict Threatens Semiconductor Supply Chain
Escalating tensions in the Middle East, following coordinated strikes by the United States and Israel on Iran, are raising concerns about potential disruptions to the global semiconductor industry. The conflict’s impact on the supply of critical industrial gases, particularly helium, could lead to increased production costs and potentially higher prices for consumer electronics and automobiles.
Helium Supply at Risk
Prior to the US-Israeli actions leading to the closure of the Strait of Hormuz, Qatar was a key exporter of helium to major semiconductor-producing nations like South Korea and Taiwan. The conflict introduces significant uncertainty to this supply chain.
“If there was a reduction in its supply, chip manufacturers would certainly look for alternative sources, but in the short term it could increase production costs,” noted Ivana Brancuzká, CEO and partner of the consulting firm Crowe.
Semiconductor Industry Vulnerability
The semiconductor industry is acutely sensitive to supply chain disruptions, as demonstrated by the chip crisis between 2020 and 2022. Increased costs during that period were directly reflected in the prices of consumer electronics and automobiles.
Trinity Bank Chief Economist Lukáš Kovanda warned that Czech consumers could as well feel the effects. “If the reduction in the supply of Qatari helium would limit the production of chips, we can expect the price of laptops, mobile phones and cars to rise in the Czech Republic as well. The war once again shows how strongly connected and specialized the world is,” he said.
Potential for Rapid Price Increases
Any disruption to industrial gas supplies could quickly translate into higher prices. According to Petr Škoda, CEO of logistics company JUSDA Europe, “Industrial gases are traded globally, but their production cannot be increased overnight. A short-term cut in exports from the Gulf region would be felt by the market very quickly.”
This could particularly disadvantage manufacturing industries reliant on process gases, with the semiconductor industry being especially vulnerable.
Impact on Photovoltaics
The conflict’s effects extend beyond semiconductors, potentially impacting the photovoltaics industry as well. Petr Nestrojil, business director of Bluenet, a leader in photovoltaics for residential buildings, explained, “Modern energy technologies, including photovoltaic systems, build on a broad ecosystem of electronics and semiconductor components. The stability of supply chains is therefore key not only for consumer electronics, but also for a number of other technological sectors.”
Industry Resilience and Diversification
Despite the risks, the semiconductor sector has demonstrated resilience in the past. Nestrojil added, “The industry carefully monitors any fluctuations in the availability of similar raw materials. However, the semiconductor sector is robust and in the past has repeatedly been able to respond by diversifying suppliers and technological innovations.”
Ongoing Regional Instability
As of March 11, 2026, Iran’s Islamic Revolutionary Guard Corps (IRGC) has threatened to attack “economic centres and banks” related to United States and Israeli entities in the region, following what it called an attack on an Iranian bank. This escalation further complicates the situation and increases the potential for broader economic repercussions.
Recent attacks in the Strait of Hormuz, a crucial artery for global oil supply, have also contributed to rising oil prices.