China has temporarily blocked the export of helium, a key element for chipmaking and medical uses, due to global supply disruptions caused by the Iran war.

Impact on Chipmaking and Medical Sectors

Helium is crucial for semiconductor manufacturing and is also used in the medical sector, such as in the cooling of MRI machines. The global helium supply has been disrupted since the Iran war began, leading to increased prices.

China, which produces only about 15% of its own helium, has been importing it from Qatar, which generates roughly one-third of the world’s supply. The export ban is intended to protect China’s local industry, especially in chipmaking, according to Gary Ng, a senior economist at Natixis.

The move comes as China is stepping up its self-sufficiency capabilities in chipmaking and artificial intelligence, amid a technology race with the US. The global helium supply is expected to remain tight, with no clear indication of when it will return to normal.

Original reporting: KTBS 3 (Shreveport) — read the source article.