Helium Conservation Needed to Support a Growing Semiconductor Industry

Semiconductor Helium Demand Set to Increase More Than Five-Fold by 2035

Helium consumption in semiconductor fabrication will grow more than five-fold by 2035, driven by government chip-production subsidies and the shift to smaller process nodes, according to forecasts published by IDTechEx in its report Helium Market 2025-2035: Applications, Alternatives, and Reclamation.

The growth reflects manufacturing stimulus from the US Chips Act, EU Chips Act and similar initiatives globally. Wafer cooling during fabrication—an application with no viable substitute—accounts for much of the sector’s helium dependence.

Helium’s combination of cryogenic properties, thermal conductivity, chemical inertness and diffusivity makes it essential across the manufacturing line. As foundries move to smaller nodes, thermal management becomes more critical, increasing per-wafer helium intensity.

Read also: Semiconductor manufacturing faces helium supply shortage

Demand from AI, quantum computing, telecoms, sensors, electric vehicles and automotive automation is expected to drive semiconductor output higher, amplifying feedstock requirements.

Supply Remains Tight Despite Capacity Additions

The helium market has been marked by chronic supply disruptions and price volatility over the past two decades. Geopolitical tensions, unplanned outages and scheduled maintenance at production and liquefaction plants have repeatedly crimped availability.

Helium’s storage challenges have forced some semiconductor manufacturers to slow production rates during shortage periods—a constraint that proved particularly acute when a feedstock contract lapsed mid-quarter without warning.

New capacity from Qatar and Russia is expected to come online, but geopolitical risk in key producing regions means supply security is far from assured. IDTechEx noted that increased nameplate capacity does not guarantee disruption-free deliveries.

Finite Reserves Raise Long-Term Questions

Total global helium resources stand at roughly 40 BCF, according to the United States Geological Survey. At the average annual production rate recorded between 2017 and 2023, current reserves would last approximately 250 years.

That timeline will compress significantly if semiconductor demand follows IDTechEx’s five-fold growth trajectory. The report identified sustainable management of the finite resource as a critical consideration for industries with no technical alternatives to helium.

IDTechEx pointed to helium recycling trends in other sectors as a potential model for semiconductor fabs. Reclamation systems can reduce fresh helium consumption, though capital costs and purity requirements remain barriers to wider adoption in cleanroom environments.

The report’s authors did not specify pricing assumptions or detail how midstream tolling arrangements might evolve to accommodate tighter supply. Long-term offtake contracts, which insulate buyers from spot volatility, have become more common as end-users seek predictable access to high-purity helium.

Upstream exploration for new sources has lagged demand growth, with few greenfield projects reaching production stage in recent years. Most new supply has come from the expansion of existing plants or reprocessing of crude helium previously flared or vented.