30% Helium Shortage Threatens TSMC Chip Output; AI Demand Drives Cost Inflation
TSM•Strait of Hormuz conflict has taken 30% of global helium offline, threatening TSMC’s advanced chip production and raising supply delay risks. Peer Delta Electronics warns of rising costs from material shortages and oil-driven inflation, boosting its 2025 capex to T$46.1 billion and signaling similar cost pressures for TSMC.
1. Helium Supply Disruption
The Strait of Hormuz conflict has taken roughly 30% of global helium production offline, creating a critical shortage of the inert gas used in semiconductor lithography. This supply constraint poses risks to advanced node chip output and could delay wafer fabrication cycles at leading foundries.
2. Delta Electronics Cost Inflation Warning
Peer Delta Electronics reported rising material shortages and oil-driven cost pressures, with capital expenditure at T$46.1 billion in 2025 and expected to increase this year as its AI data centre business expands. It signaled inflationary trends driven by surging AI demand that may foreshadow wider industry cost increases.
3. Implications for TSMC
TSMC’s advanced process technologies rely on consistent helium supply and face similar inflationary headwinds in equipment and raw materials. The combination of input shortages and rising costs could tighten profit margins and complicate capacity expansion plans.
