The ripples span wider than you might think.



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The war in Iran is causing supply issues globally, with constrained gas and oil supplies due to the closure of the strait of Hormuz being the ones that hits home for most people. But we're also starting to see impacts on the supply of different materials which, on top of a memory shortage, aren't looking too good for the global technology supply chain.

I've spoken to a few different technology supply chain experts to figure out exactly which materials are affected and why. And perhaps more importantly, I asked them what they think the prospects are for the semiconductor and component manufacturing market, as well as for end-consumers such as PC gamers like you and I.

Unfortunately, the answer isn't the prettiest, as I discovered that the effects are broad and wouldn't be resolved even if the strait re-opened right away, as plenty of damage is already done. But it's not all hopeless, as I learned what companies are already doing to deal with the supply issues caused by the conflict in the Middle East.

Helium is probably the most crucial material for PC tech that we've seen affected by the conflict. It can get incredibly cold (up to -269 °C) without turning into a liquid, which makes it very useful for keeping things cool during different parts of manufacturing processes. Perhaps most importantly, it keeps chips cool while they're having their circuitry etched onto them during fabrication.

Exiger SVP of Product Level Intelligence Derek Lemke tells me: "Helium is not optional in semiconductor manufacturing. It is used in wafer cooling, etching, and EUV lithography processes, and there is no substitute. That makes it essential for GPU and CPU production and increasingly for DRAM."

Qatar produces about a third of the world's supply of helium, and in addition supplies being blocked by the closure of the strait of Hormuz, Iranian attacks on Qatar energy sites have effectively completely shut down helium production from the country.



"Clearly the helium example coming out of Qatar is disastrous," Jonathan Colehower, Managing Director, Global Operations & Supply Chain Practice at UST, tells me bluntly. "And unfortunately there's not a substitute."

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Sulphuric acid supply has also been impacted because much of it usually runs through the now-closed strait of Hormuz. This acid is used for things like wafer cleaning as well as to make copper plating baths for PCB cleaning and etching.

It's also used to help extract copper from ore, so sulphuric acid supply issues could mean copper supply issues. Copper is, of course, used in many PC components, for instance forming the copper connections in CPUs, motherboards, and heat pipes on coolers, so there's potential impact down the line there, too.

Speaking of motherboards and other PCBs, Polyphenylene Ether (PPE) has also been impacted by the conflict, and we're already hearing that PCB prices might have risen by as much as 40% since March as a result.

PPE resin is what fibreglass layers are soaked in before they're all stacked together to form a PCB substrate. It's a bit like the glue that holds all the different layers of a PCB together.

Most of the world's high-quality PPE comes from Saudi Basic Industries Corporation (SABIC) in Saudi Arabia which was struck by Iran in April. Since then, the facility in Jubail has been unable to resume output of PPE. Thus, the reported 40% increase in PCB prices.

Saying this, however, Colehower reckons resin supply issues won't be as big of a deal as some other materials like helium, because apparently "we have a more diversified supply base in the resins."



Aluminium is used in a bunch of end-consumer components and devices. Lemke tells me, "Direct strikes against the gulf smelters, EGA and Alba" are "c...Read more: Full article on www.pcgamer.com

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