The global semiconductor industry is undergoing an evolution as nations worldwide seek to strengthen their domestic chip production capabilities. 

This shift, catalysed by recent geopolitical tensions and supply chain vulnerabilities exposed during the COVID-19 pandemic, has led to significant policy initiatives such as the US Chips Act and the EU Chips Act.

These programmes aim to reduce dependence on foreign chip manufacturers and bolster national technological sovereignty.

However, this push for domestic semiconductor production is poised to have far-reaching consequences, particularly in the realm of helium supply and demand.

Helium, a critical element in semiconductor manufacturing, is at the centre of this transformation.

Its unique properties make it indispensable in chip production processes, particularly in cooling applications where no viable alternatives exist.

This means that as countries ramp up their domestic chip manufacturing capabilities, the demand for helium is expected to surge, raising concerns about the sustainability of supply chains and the potential for market volatility.

Helium demand set to soar

According to a recent report by IDTechEx, a technology market research firm, helium demand for semiconductor manufacturing is projected to increase more than five-fold globally by 2035.

In the US alone, demand is expected to quadruple over the next decade.