TAIPEI (Taiwan News) — Middle East tensions have created uncertainty for Asia’s chip supply chain but Taiwan’s helium supply remains stable, the Ministry of Economic Affairs said Friday.

Qatar Energy declared a force majeure on March 4, raising concerns that helium disruptions could affect semiconductor production, per Reuters. Helium is critical for wafer cooling and coating processes in chip manufacturing with Qatar producing roughly a third of the world's supply.

South Korea and Taiwan each hold about 18% of global semiconductor capacity, and Japan about 15%, per Nikkei Asia. Any supply disruption in the Middle East could impact half of the world’s chip output.

The economics ministry said Taiwanese companies can source helium from multiple countries, including the US and Australia, reducing reliance on Qatar, per CNA.

According to the ministry, helium is mainly a byproduct of natural gas extraction and is used in semiconductor processing, welding protection, and balloons. Most helium in Taiwan is recycled, with new supply used only as a supplement.

The ministry clarified that helium demand in chip production is relatively low and manageable. Taiwanese suppliers confirmed alternative sources are ready if needed.

Meanwhile, TSMC said in a statement that it does not expect the situation to have a major impact on its operations but will monitor developments, per RTI.