Recently, the prices of semiconductor stocks in the United States have plummeted, and Samsung and SK Hynix have also fallen simultaneously. This selling spree is attributed to the growing concerns over the semiconductor supply chain. The market is increasingly worried that the war in Iran might enter a prolonged stage. Moreover, the soaring oil prices have exacerbated risks in all industries, including semiconductors. 

The war between the United States, Israel and Iran may disrupt the supply of critical semiconductor manufacturing materials from the Middle East. South Korea's chip industry supplies approximately two-thirds of the world's storage chips. This industry is also concerned about the supply chain risks brought about by the ongoing conflict in Iran. Relevant sources have pointed out that if some key materials cannot be purchased from the Middle East, semiconductor production may be disrupted. 

Among them, the most notable one is helium. Helium is a key material for heat dissipation in the semiconductor production process and there is currently no feasible alternative. Only a few countries in the world produce helium, and Qatar is one of the major producers, accounting for approximately 38% of the global supply. However, 100% of Qatar's helium must be transported by sea through the Strait of Hormuz, and there is no alternative shipping route. 

It is worth noting that according to data from the Korea International Trade Association, last year Qatar accounted for 64.7% of South Korea's total helium imports. The Chemical & Engineering News (C&EN) published by the American Chemical Society stated that "one-third of the global helium supply has vanished from the market" since the conflict began, and warned that "if the conflict lasts for more than two weeks, the supply disruption for helium users may take several months to recover." 

Domestic enterprises in South Korea have taken measures such as pre-stocking and diversifying their supply chains to gain time. SK Hynix has obtained additional supply sources beyond its existing helium stock, effectively avoiding short-term risks. 

The Ministry of Trade, Industry and Energy of South Korea stated that there are another 14 items in South Korea's chip supply chain that are highly dependent on supplies from the Middle East. Among them, 97.5% of South Korea's bromine imports come from Israel. Currently, bromine is classified as a potential risk factor, and compared to helium, its direct impact is relatively smaller. Bromine gas is used in etching processes to remove unnecessary parts in semiconductors, and high-purity bromine hydride (HBr) is used in the polysilicon etching process during the manufacturing of DRAM and NAND flash memory. 

The longer the blockade of the Strait of Hormuz lasts, the greater the cost and time burden of procuring key raw materials will be; even if the supply does not completely cease, it will take time to switch to verified alternative suppliers. At the same time, a long-term blockade of the Strait of Hormuz may exacerbate the additional power cost burden caused by the soaring energy prices (including oil, natural gas, etc.), and semiconductor factories are high-energy-consuming facilities. The short-term fluctuations and rising cost pressures in the semiconductor industry seem inevitable. 

Although the South Korean semiconductor industry has been steadily reducing its reliance on external electricity through self-generated power and energy-saving investments over the years, given South Korea's high dependence on energy from the Strait of Hormuz, short-term risk management for the increasing volatility is necessary, as well as a medium- and long-term strategic approach based on the industry's structural resilience and the continuity of investment cycles. 

American tech giants such as Microsoft and NVIDIA have always regarded the United Arab Emirates as a regional hub for artificial intelligence computing power. This crisis may, in the long run, also hinder the plans of large tech companies to build artificial intelligence data centers in the Middle East, thereby suppressing strong chip demand. Iran has launched a large number of drones and missiles at Gulf countries in retaliation for the joint attack by the United States and Israel. Amazon stated that some of its data centers in the United Arab Emirates and Bahrain were damaged by drone attacks, raising questions about the expansion pace of tech giants in the region. 

Thanks to the global competition among technology companies in building AI data centers, the semiconductor industry is currently in a super cycle. The prices of storage chips have soared over the past few months, and major Korean semiconductor manufacturers such as Samsung and SK Hynix have continued to benefit. In the long term, the growth momentum of the semiconductor industry remains strong. The situation of supply shortages for DRAM and NAND flash memory is expected to persist, and these structural factors support the continued rise in prices.