Taiwan has run out of helium. And has a reserve of liquefied natural gas for 11 days at best. It is a very serious problem that is of great concern to Taiwanese semiconductor manufacturers. In fact, the Taiwan Semiconductor Industry Association (TSIA) has asked the Government of the island that set up a strategic reserve of these two resources capable of guaranteeing their availability for a long period of time.
The origin of this problem is the war between the US, Israel and Iran. These countries have agreed to a two-week ceasefire agreement, but Taiwan remains on the ropes. The blocking of Strait of Hormuz has disrupted the supply of helium and liquefied natural gas on which many Asian countries depend, and the Taiwanese integrated circuit industry is deeply dependent on these two resources.
Taiwan cannot afford to have such a fragile supply chain
More than 40% of Taiwanese power plants use liquefied natural gas. And chip factories need a stable supply of electricity to sustain their activity. Additionally, these facilities require the use of helium in several critical stages of the IC production process, and Taiwan currently does not have a helium reserve. The US and Japan have already created a strategic inventory of liquefied natural gas and helium, and TSIA has requested the Taiwanese government to do the same. There is a lot at stake.
The production of cutting-edge chips gives Taiwan enormous relevance from a geostrategic point of view
And the semiconductor industry is strategic for Taiwan for three fundamental reasons: it represents among 13% and 15% of the gross domestic product of the country; is the engine of its exports with a value close to 40% of the total; and finally, the production of cutting-edge chips gives the country enormous relevance from a geostrategic point of view. For this reason, it is crucial for this Asian country that TSMC, UMC and its other companies involved in the integrated circuit industry have the resources they need.
TSIA has noted that Taiwan must diversify its energy sources:
“We propose to the Government the need to continue diversifying our energy sources and the supply of critical materials to prepare for the uncertainty of the current situation (…) Our Association also supports the Government’s decision to reopen nuclear power plants to have a more stable energy supply as long as the processes meet legal requirements and safety is guaranteed.”
Be that as it may, the underlying problem that Taiwan faces is that its economy, as we have seen, is deeply dependent on the semiconductor industry. And their supply chain is fragile. Very fragile. The Administration closed the last nuclear power plant in May 2025, and since then more than 95% of the island’s electricity depends on imported resources. The temporary ceasefire agreement reached by the US, Israel and Iran is likely to alleviate some of the pressure on Taiwan, but its integrated circuit industry is too important to allow it to be so sensitive to the international situation.
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More information | Nikkei Asia
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