China has imposed a temporary ban on helium exports effective immediately, as resumption of military conflict in the Middle East threatens to trigger new shortages of the gas critical for chip manufacturing, the Ministry of Commerce and General Administration of Customs announced.The ban applies to all overseas shipments with no exemptions or destination markets specified, according to the announcement.The move comes as global helium supplies have come under severe strain during the US-Israel war on Iran, which forced a major facility in Qatar to close and affected shipping traffic through the Strait of Hormuz. Helium is essential for heat management in semiconductor production and cannot be quickly manufactured from other industrial processes.
China acts to secure domestic supply
China imports around 85 per cent or more of its helium requirements, with Qatar accounting for more than half of China’s imports in recent years. Despite efforts to expand domestic production, China remains heavily dependent on overseas helium.The export ban could squeeze global supply further because Chinese companies have increasingly acted as intermediaries, importing Russian helium and re-exporting some volumes to overseas markets, including Europe.Analysts said the ban was a “clear defensive move” aimed at prioritising uninterrupted supply for domestic chipmakers amid surging memory demand driven by the artificial intelligence boom.“Beijing is moving early to lock in helium supplies for its chip push before global competition for remaining volumes intensifies, or prices spike further,” said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis.
Supply shock hits semiconductor industry
Helium is extracted from natural gas fields with unusually high concentrations. In chipmaking, it is used for wafer cooling, plasma etching, chemical vapour deposition, atomic layer deposition and lithography support.Production of the gas is highly concentrated among just a few countries, with the United States accounting for 42.6 per cent of global output and Qatar 33.2 per cent, leaving the industry highly vulnerable amid the Middle East conflict.In April, S&P Global noted that the war was disrupting supplies of several key raw materials, with helium “under the biggest risk” due to its use in semiconductor manufacturing.China’s helium imports fell by more than 10 per cent year-on-year in the first five months of 2026 amid the conflict, though exports have continued to rise amid a surge in global prices.
