{"id":96158,"date":"2026-04-14T12:47:47","date_gmt":"2026-04-14T09:47:47","guid":{"rendered":"https:\/\/u1f987.com\/en\/?p=96158"},"modified":"2026-04-14T12:50:20","modified_gmt":"2026-04-14T09:50:20","slug":"middle-east-conflict-disrupts-asias-semiconductor-and-data-centre-industries","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/middle-east-conflict-disrupts-asias-semiconductor-and-data-centre-industries\/","title":{"rendered":"Middle East Conflict Disrupts Asia’s Semiconductor and Data Centre Industries"},"content":{"rendered":"

Asia’s tech sector braces for prolonged and significant disruptions due to the Middle East situation. Analysts have warned of reduced semiconductor production and a slowdown in AI data centre construction, reports SCMP<\/a>.<\/p>\n

The Strait of Hormuz, through which about a quarter of the world’s maritime crude oil trade and 20% of liquefied natural gas (LNG) shipments pass, has effectively been closed following additional blockades by the US.<\/p>\n

The price of crude oil has risen above $100, while the spot price of LNG delivered to Northeast Asia has approached $20 per million British thermal units.<\/p>\n

Energy costs in the Asia-Pacific region directly affect production, transport, and financing.<\/p>\n

South Korea, Taiwan, and Singapore cover 15-35% of their gas needs through supplies from Qatar. Singapore generates about 90% of its electricity using natural gas.<\/p>\n

In March, Iranian missiles struck Qatar’s Ras Laffan complex, which accounts for about a third of global supplies. Its repair will take three to five years.<\/p>\n

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“After the cessation of hostilities, normalising natural gas production will take longer than oil due to infrastructure damage and contract renegotiation timelines,” states a report by research firm BMI.<\/p>\n<\/blockquote>\n

Helium \u2014 The Foundation of Semiconductors<\/h2>\n

Chip production heavily relies on helium, a by-product of natural gas processing. The material is needed for cooling wafers during chip etching. There is no viable industrial-scale alternative, stated David Pan, director and AI expert at Moody\u2019s.<\/p>\n

The analyst emphasised that South Korea is particularly vulnerable due to helium supply disruptions. Last year, 65% of its raw material purchases came from Qatar.<\/p>\n

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“Orders for graphics processors and high-bandwidth memory have already accumulated for over a year, so two-month supply disruptions will extend beyond this period. The situation will worsen and evolve into a much longer crisis,” warned Pan.<\/p>\n<\/blockquote>\n

Policies could influence the situation, stated Josh Yu, a researcher at the Epoch AI research institute. According to him, in a severe crisis, chip manufacturing plants will become top-priority industrial clients in South Korea and Taiwan, while limits will be set for other enterprises.<\/p>\n

The US government may also intervene in the event of a severe shortage. <\/p>\n

Samsung Electronics and SK Hynix have signed long-term helium supply agreements with Germany’s Linde and America’s Air Products. Taiwan’s Minister of Economy stated that the island has received assurances of resource provision from a “major” LNG-producing country.<\/p>\n

Yu stressed that AI chips are crucial for the US’s economic and strategic interests, so the government can ensure Taiwan receives the necessary LNG if needed.<\/p>\n

Data Centres<\/h2>\n

Another area affected by the Middle East conflict is data centres. They consume more energy compared to semiconductor wafer production, and the conflict could cause serious issues.<\/p>\n

According to Yu, the current rise in energy prices has not yet affected existing data centres<\/span>, but it could impact planned projects.<\/p>\n

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“An increase in overall costs by 10-20% due to the energy crisis could end some projects,” the expert emphasised.<\/p>\n<\/blockquote>\n

The situation threatens regional imbalances and the relocation of capacities from Europe and Asia to the US.<\/p>\n

During the ceasefire, Iran will demand<\/a> shipping companies pay for passage through the Strait of Hormuz in cryptocurrency.<\/p>\n