China's Semiconductor Boom Drives Global Helium Demand
China's semiconductor industry, the world's second-largest, is driving global helium demand. Key manufacturers and state-owned enterprises are major consumers and suppliers, with the country accounting for over 60% of chip consumption despite producing only 20% of the world's wafers.
The semiconductor industry's growth, particularly in China, is fueling helium demand. In 2023, Asia, led by China, Taiwan, Korea, and Japan, consumed 75% of the world's semiconductor helium. AI-driven chip production is a significant driver, while MRI helium use declines due to improved efficiency. China's advantage in accessing discounted Russian helium further boosts its demand.
Semiconductors now account for over a fifth of global helium demand, surpassing MRI applications. The leap to advanced chip nodes, like 1.4nm, increases critical steps by 50%, each needing more helium for cooling during high-temperature processes. The industry is projected to grow at an average of 6.3% annually, with a 14.6% surge expected in 2023. In China alone, helium use for chip production is estimated to reach 0.281 billion cubic feet by 2025.
China's semiconductor industry, heavily reliant on helium, is set to continue driving global demand. With access to discounted Russian helium and a growing domestic production, the country is well-positioned to meet its increasing needs despite being the world's largest importer.
