A global helium supply disruption triggered by the West Asia crisis is beginning to add pressure on the semiconductor supply chain, with potential spillovers for electronics manufacturers that rely on chips, even as India’s nascent fabrication units remain largely insulated for now.
Helium, a critical industrial gas used in semiconductor manufacturing, has seen supply constraints following disruptions in Qatar, which accounts for a significant share of global output. The immediate impact on India’s chipmaking ecosystem is limited, as large-scale fabrication facilities are yet to ramp up production. However, industry executives said prolonged disruption could tighten chip availability for downstream sectors such as smartphones, laptops and consumer electronics.
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Faisal Kawoosa, chief analyst at Techarc, said pricing pressures were already building due to memory shortages, and the helium disruption could add to costs. “Prices have already been increasing for various reasons, mainly due to memory shortages. Now, with the West Asia crisis impacting helium supply, we expect another round of price increases starting early April,” he said.
Most original equipment manufacturers (OEM) typically operate with inventory buffers of three to five weeks. This suggests that any supply-side stress may become visible once existing inventories are exhausted, particularly for smaller and mid-tier brands that have less bargaining power with component suppliers.
Two-Week Clock
Industry estimates point to a moderation in demand as well. “We are estimating a 7–15% dip in volumes across smart device categories in India,” Kawoosa said, indicating a shift in consumer spending towards essentials amid global uncertainty.
Executives said the impact would be uneven across the value chain. Larger, Tier-1 manufacturers are likely to be prioritised by suppliers, while smaller firms may face tighter component availability and higher input costs if the situation persists.
Physics of Scarcity
Helium is used in critical semiconductor processes such as wafer cooling, maintaining vacuum environments and leak detection. It has limited substitutes at scale, making supply disruptions difficult to offset.
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Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA), said India’s exposure is currently limited but highlighted a structural risk. “For India, the immediate impact is expected to be limited, as large-scale semiconductor manufacturing is yet to fully ramp up. However, as the country accelerates its semiconductor ambitions, this development highlights the importance of securing reliable access to critical materials like helium,” he said.
India depends largely on imports for helium, sourcing from countries such as Qatar, the US and Russia, with negligible domestic production.
For chipmakers, the risk is more operational if shortages persist. Hareesh Chandrasekar, co-founder and CEO of Agnit Semiconductors, said helium is essential for thermal management during fabrication. “When wafers are etched, they heat up due to ion bombardment. Helium is used to dissipate that heat efficiently,” he said. “There is really no substitute.”
TOPICSsupply chainThis article was first uploaded on March twenty-six, twenty twenty-six, at twenty-three minutes past nine in the night.