Update: Taiwan & South Korea – No Natural Gas

Update: Taiwan & South Korea – No Natural Gas or Helium Shortages On Horizon Despite Qatar Disruptions (March 25, 2025)

Taiwan and South Korea depend greatly on imported fossil fuels. Recent Iranian attacks on Qatar’s Ras Laffan LNG facilities damaged production, triggered force majeure declarations on some long-term contracts, and temporarily halted or reduced helium output (a byproduct of natural gas processing). Qatar previously supplied ~30–33% of global helium and a significant share of LNG to both countries.

Natural Gas (LNG) Supply

· Taiwan: On 3/25, Officials said supplies are secured through end-May 2026, with 50% of June already scheduled via alternatives.

Qatar previously accounted for one-third of Taiwan’s LNG imports. The nation has activated emergency procurement and is shifting more imports to the US and Australia.

Last year, natural gas fueled 53.3% of Taiwan’s electricity generation, followed by coal 26.6% and renewables 12.7%.

· South Korea: Less dependent on natural gas for power (nuclear and coal play larger roles). In 2025, natural gas accounted for ~26–28% of electricity generation. Qatar supplied ~14–15% of South Korea’s LNG imports (third-largest source after Australia and Malaysia).

Authorities say no major supply disruption is expected due to diversified sources and alternatives.

Helium Supply & Semiconductors

Helium is critical for semiconductor manufacturing (used as a carrier gas and for cooling in processes like lithography and deposition).

· Taiwan officials state there is no shortage risk for at least six months. Semiconductor firms have strong inventories (industry reports suggest 1–2 quarters of buffer in some cases) and diversified sourcing (now emphasizing the US and Australia over cheaper Qatari supply). Most helium in advanced fabs is already recycled on-site; new/virgin helium is used only as a supplement.

· South Korea: Chip makers (Samsung Electronics and SK Hynix) report ~6 months of stockpiles. However, South Korea was more exposed: it sourced 64.7% of its helium imports from Qatar in 2025. Firms are actively seeking alternatives.

Neon Gas Lessons

TSMC, Samsung, and SK Hynix are relatively well-positioned in helium thanks to lessons from the 2022 neon gas crisis, caused by Russia’s invasion of Ukraine, which risked ~70% of the high-purity neon supply.

The chip giants have implemented three main responses:

· Optimizing processes to reduce helium consumption.

· Diversifying suppliers (increased reliance on the US, the world’s largest producer).

· Deploying advanced on-site helium recycling/reuse systems.

Recycling & Recovery Rates

Large advanced fabs with modern closed-loop systems typically achieve 80–90% helium recovery rates. This means net consumption of fresh helium is much lower than gross usage — often cited in the 10–30% range depending on the fab and process.

Broader Alternatives & Resilience

· Primary global helium suppliers: United States (largest), Qatar (second, now disrupted), Russia, Algeria, Canada, and smaller/emerging sources.

· Industrial gas partners (Air Liquide, Linde, Air Products, and local firms like TEMC in Korea provide storage, purification, and localized supply chain support.

· Overall, while medium-term risks exist if disruptions drag on (repairs to Ras Laffan could take years), near-term semiconductor production faces no major helium-driven disruption due to stockpiles, recycling, and diversification.

Key Takeaway

Taiwan and South Korea’s semiconductor sectors have built meaningful buffers and efficiency gains since the neon gas crisis. Natural gas power generation is manageable in the short term through continued shipments (Taiwan) and nuclear/coal (South Korea). The situation remains “controllable” per officials, but prolonged conflict or extended force majeure could raise costs and require further adjustments.

$台积电(TSM.US) $HXSCL $SSNLF $空气化工产品(APD.US) $Linde(LIN.US) #Samsung #SKhynix #semiconductors #semiconductor

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Source: Dan Nystedt