Helium Demand Set to Rise Five-Fold due to Semiconductors
The semiconductor manufacturing sector faces pressure on helium supplies as national policies drive domestic chip production growth, with initiatives in multiple regions aiming to reduce reliance on foreign manufacturers.
Research from IDTechEx indicates helium consumption in semiconductor fabrication will increase fivefold globally by 2035, driven by US and EU initiatives to reduce dependence on overseas manufacturers. This shift follows supply chain vulnerabilities exposed during the COVID-19 pandemic and growing geopolitical tensions.
Such an increase in demand stems from helium's role in semiconductor manufacturing processes, particularly in cooling applications. The element's properties make it essential for producing advanced semiconductor nodes required for emerging technologies.
CHIPS Act drives US manufacturing investments
The demand for chips worldwide continues to swell, with investors taking advantage.
The US CHIPS Act, first formed in 2022, has allocated more than US$30bn of its US$39bn in direct incentives for domestic chip manufacturing. This government programme is designed to strengthen US semiconductor production capabilities and reduce dependence on foreign manufacturers.
- According to IDTechEx, helium demand for semiconductor manufacturing is projected to increase more than five-fold globally by 2035
As a result, companies like Taiwan Semiconductor Manufacturing Company (TSMC), which produces semiconductors for global technology firms, is constructing three fabrication plants in Arizona.
The company's first facility will manufacture chips using 4-nanometre process technology, which creates smaller transistors for improved performance and reduced power consumption. Production is scheduled to begin in the first half of 2025.
Likewise, Intel, the US-based semiconductor design and manufacturing company, has also announced plans to invest more than US$100bn over five years to expand its chip-making capacity across multiple US states.
Helium supply constraints could pose a barrier
Helium plays a critical role in semiconductor manufacturing, where no alternatives exist for specific cooling applications.
With US demand is projected to quadruple within ten years, driven by growth in AI, quantum computing, 5G telecommunications and electric vehicle applications, increased demand for helium will inevitably add to ongoing supply challenges.
Helium supply constraints could pose a barrier
Helium plays a critical role in semiconductor manufacturing, where no alternatives exist for specific cooling applications.
With US demand is projected to quadruple within ten years, driven by growth in AI, quantum computing, 5G telecommunications and electric vehicle applications, increased demand for helium will inevitably add to ongoing supply challenges.
Dr Shababa Selim, Technology Analyst at IDTechEx, says: "Helium's exceptionally high thermal conductivity and chemically inert nature allow for the fast cooling of chips during production".
While nations Qatar and Russia are planning to increase helium production capacity, geopolitical tensions in helium-producing regions could affect supply.
These supply considerations are particularly relevant as the semiconductor industry advances towards smaller manufacturing nodes, which require more effective thermal management during production processes. The combination of increased production capacity and more helium-intensive manufacturing processes is set to transform demand patterns.
"The semiconductor industry will increasingly need to consider helium management solutions such as helium recycling and reclamation technologies to future-proof the industry's sustainable growth."
Industry investments in domestic semiconductor production are creating new requirements for helium supply chains. The scale of planned manufacturing expansion, particularly in regions previously reliant on imports, necessitates new approaches to helium sourcing and management.
Dr Selim adds: "The semiconductor industry will increasingly need to consider helium management solutions such as helium recycling and reclamation technologies to future-proof the industry's sustainable growth."
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