<2> The War on Iran Puts Global Chip Supplies and AI Expansion at Risk
<3> Global Chip Industry’s Vulnerability to Conflict
The global semiconductor industry is a complex web of interconnected supply chains, stretching from the extraction of rare earth minerals in distant lands to the assembly of microchips in state-of-the-art factories. One of the most critical regions for the industry is the Gulf, where the fragile links between countries can be easily disrupted.
<4> The Strait of Hormuz: A Strategic Waterway
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, is a critical shipping lane for the global chip industry. The strait is used by oil tankers and cargo ships, including those carrying essential components for chip production, such as copper and silicon. Any disruption to shipping in the strait could have a significant impact on global chip supplies.
<5> Helium Extraction in Qatar: A Key Component
Helium is a critical component in the production of semiconductors, particularly in the creation of high-performance chips. Qatar is one of the world’s largest producers of helium, and any disruption to its extraction and export could have a significant impact on global chip production.
<6> The Impact of Conflict on Chip