Asger Risom
Rising tensions in the Middle East are threatening the energy and material supplies that power semiconductor production, putting Taiwan and South Korea at the center of a potential global tech disruption.
The global semiconductor industry is facing a growing threat that has little to do with chip design — and everything to do with energy and supply chains.
Rising tensions in the Middle East are beginning to disrupt the flow of oil, gas, and key materials, putting pressure on the infrastructure that powers chip production. According to a Barclays analysis cited by Ctee, the risk is especially high for Taiwan and South Korea, two of the most critical hubs in the global tech ecosystem.
Even short-term disruptions could ripple across the entire industry.
Energy at the core of production
Modern semiconductor manufacturing depends on stable and continuous energy supply.
Facilities operated by companies such as TSMC, Samsung Electronics, and SK Hynix require vast amounts of electricity to maintain precision processes. Any interruption, even brief, can halt production and damage output consistency.
Barclays notes that the market focus is shifting — from whether oil prices will rise further to whether energy supply itself can remain stable enough to sustain operations.
A fragile supply route
Geography is a major vulnerability.
Both Taiwan and South Korea rely heavily on energy imports that pass through the Strait of Hormuz. Any disruption to this route could delay or reduce fuel deliveries needed for power generation.
At the same time, both countries have reduced reliance on coal, increasing their dependence on imported liquefied natural gas.
Taiwan’s reserves, estimated at around 11 days, leave little room for prolonged disruption.
A concentrated global system
The semiconductor industry is highly centralized.
TSMC produces a large share of the world’s advanced chips, while Samsung, SK Hynix, and Micron dominate memory production. Together, these companies form the backbone of global electronics manufacturing.
This concentration means that issues in a few locations can quickly cascade into global shortages.
Materials under pressure
Beyond energy, chip production depends on specialized raw materials.
Taiwan relies on imports such as helium and bromine, which are essential for semiconductor processes and are partly sourced from or routed through the Middle East.
Any disruption in these supplies could further strain production capacity.
Ripple effects across technology
The impact would extend far beyond chipmakers.
Companies dependent on advanced semiconductors could face delays, forcing adjustments in production schedules and product launches. This includes sectors tied to artificial intelligence, consumer electronics, and data infrastructure.
The result is a tightly interconnected system where disruptions in one region can quickly affect global technology availability.
Sources: Barclays (via Ctee), industry data on TSMC, Samsung, SK Hynix
