<div id="readability-page-1">SINGAPORE: The global helium shortage has not immediately affected Singapore’s semiconductor manufacturing and healthcare operations, but a prolonged disruption could push prices up. Helium is used in advanced chip production as well as in some magnetic resonance imaging (MRI) machines that detect tumours and injuries to muscles or ligaments. The gas is a byproduct of natural gas processing, and Qatar is a key supplier. Supply has tightened due to the Middle East conflict. The Ministry of Health (MOH) said it uses small amounts of helium for certain MRI machines and laboratory testing. “Our supplies remain secure,” the ministry said, adding that it sources the gas from various countries. MOH has been implementing supply chain resiliency measures, including diversified sourcing strategies, to keep medical supplies stable for public healthcare needs, a spokesperson said. “That said, the Middle East situation is volatile,” said the ministry. It is represented on the Homefront Crisis Ministerial Committee and is monitoring the situation and developments closely. CRITICAL IN CHIPMAKING Helium is widely used in semiconductor manufacturing and plays a critical role across multiple stages of production, said Mr Ang Wee Seng, executive director of the Singapore Semiconductor Industry Association. It is used in cooling semiconductor wafers and maintaining an ultra-clean, non-reactive environment. “Its unique properties – being chemically inert and highly effective at thermal management – make it indispensable for achieving the precision required in advanced chip production,” said Mr Ang.The gas is critical for precise temperature control and safe heat removal, said Mr Lau Gih Sheng, a senior lecturer at Republic Polytechnic's School of Engineering. It is also used to detect leaks in vacuum systems and gas pipelines. American memory chipmaker Micron Technology said its operations are normal and it is monitoring the situation in the Middle East. “We have diversified sourcing for manufacturing materials, maintained appropriate inventory to support our business and are working closely with suppliers to facilitate uninterrupted supply,” the company said in response to CNA’s queries. Taiwanese chipmaker United Microelectronics Corporation (UMC) also said its operations have not been significantly affected. The company, which has manufacturing plants in Taiwan, Singapore, China and Japan, said each site has localised procurement and control strategies, with global management oversight.  The manufacturing facilities can provide support across regions if needed, and every critical material has several suppliers to keep operations resilient, said Mr Thomas Tey, senior fab director at UMC Singapore. “For example, while the Iran conflict has tightened global helium supply over the past month, there is currently no impact on our operations as we have diversified sources from different regions,” he said. Mr Tey said the company has navigated various geopolitical events before and will adjust its strategies as the situation develops. COSTS, NOT OPERATIONS, AT RISK The impact remains limited and manageable for now, but a prolonged disruption could worsen conditions, said Mr Ang of the Singapore Semiconductor Industry Association. “If the disruption to global helium supply persists, particularly given the concentration of production in regions like Qatar, we could start to see tighter supply conditions and cost pressures emerging over time,” he said. Alternative sources outside the Middle East exist, but whether they can fully offset a shortfall depends on the duration and severity of the disruption. Qatar is Singapore's main source of helium, though the US, Russia and Algeria also produce the gas, Mr Lau said. “Qatar produces a large percentage of global supply; a total shutdown of their exports is difficult to replace instantly,” he said, adding that Singapore relies entirely on imports. A prolonged shortage could lead to increased costs and pose long-term operational challenges, he said. Diversified supply and existing inventories can help to cushion the impact, but a sustained disruption could tighten the market and push prices up, said Mr Ang. Rising energy prices are already feeding into manufacturing and logistics costs, and shipping costs have climbed due to higher fuel prices and route risks. Consumers may see higher costs for electronics, cars and AI-related products, he added. WHAT CAN BE DONE? Manufacturing plants may need to prioritise helium use on critical products if the shortage persists, Mr Lau said. Foundries could also capture and reuse up to 90 per cent of the helium used in cooling and leak detection. “On top of seeking alternative sources outside of Qatar, foundries may capture and reuse upwards of 90 per cent of helium used in cooling and leak detection,” he said. Mr Ang said helium recycling systems and existing mitigation strategies can be accelerated if needed, but noted that helium has no true substitute for certain critical processes. “These measures can only partially offset supply constraints,” he said. He added that the industry is facing pressures rather than disruptions, with the main impact falling on costs rather than operations. The sector has also built up buffers and is more resilient than it was several years ago. “The key risk is if the situation escalates or becomes prolonged, which could introduce more volatility in both material supply and operating costs,” Mr Ang said.</div>

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<p>The global helium shortage has not yet impacted Singapore's semiconductor and healthcare sectors, but prolonged disruptions could lead to increased costs. Helium is essential for chip production and MRI machines. The Ministry of Health assures secure supplies through diversified sourcing. Companies like Micron Technology and UMC report normal operations, with strategies in place to mitigate risks. However, if the shortage continues, costs may rise, affecting electronics and AI products. Manufacturers may need to prioritize helium use and explore recycling options, though helium has no true substitute for critical processes.</p>

- The global helium shortage has not yet impacted Singapore's semiconductor and healthcare sectors, but a prolonged disruption could raise prices.  
- Helium is essential for chip production and MRI machines, with Qatar being the main supplier, though supply has tightened due to regional conflicts.  
- While current operations are stable, experts warn that extended shortages could lead to increased costs and operational challenges, prompting the need for diversified sourcing and helium recycling initiatives.

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Helium shortage yet to hit Singapore's semicon, healthcare sectors, but prolonged disruption may push costs up