Middle East Crisis May Trigger Semiconductor Price Surge, Allianz Research Warns

Allianz Research has indicated that the ongoing Middle East crisis could lead to a significant increase in semiconductor prices. According to Odaily, the institution highlighted that the risk of energy shortages due to the crisis might drive prices higher, given the already tight and concentrated supply. Additionally, the shortage of critical raw materials for semiconductor production, particularly helium, could impact factories, potentially resulting in monthly losses exceeding $10 billion, the agency noted. Allianz Research pointed out that Qatar accounts for one-third of the global helium production. Helium is a crucial upstream input in the artificial intelligence supply chain and is almost entirely transported through Gulf ports, the research added.