The Bromine Chokepoint: Middle East Conflict and the Global Memory Chip Crisis

The conflict between the United States, Israel, and Iran has exposed a critical structural vulnerability in the global semiconductor memory supply chain. While international attention has focused on the disruption of helium supplies, a more precarious chokepoint has emerged regarding the availability of bromine, a raw material essential for the production of memory chips.

Bromine serves as the primary feedstock for the production of semiconductor-grade hydrogen bromide gas. This gas is used as an etch chemical by fabrication plants in South Korea to carve the transistor structures required for both Dynamic Random-Access Memory (DRAM) and NAND flash chips. Together, these two types of memory underpin nearly all modern computing devices, including smartphones and the data centers that power artificial intelligence applications.

The Bromine Dependency

The vulnerability of the memory chip supply chain is highlighted by the extreme geographic concentration of bromine sourcing. South Korea, a global leader in semiconductor manufacturing, sources 97.5 percent of its bromine imports from Israel.

Because the U.S.-Israeli war with Iran has created significant regional instability, the flow of this critical material is at risk. This dependency creates a scenario where regional strife in the Middle East could potentially halt the global production of memory chips.

The Parallel Helium Crisis

The bromine shortage exists alongside a more widely reported crisis involving helium. Helium is indispensable for semiconductor manufacturing, used for its cooling properties to transfer heat and as a key component in photolithography, the technique used to print intricate circuitry on chips.

The helium supply chain was severely disrupted following attacks on infrastructure in Qatar. On March 4, 2026, Qatar announced a complete shutdown of its gas liquefaction operations for at least one month. This was followed by an Iranian drone strike on March 18, 2026, targeting the Ras Laffan industrial city, which houses the world’s largest liquefied natural gas (LNG) plant.

Because helium is captured as a byproduct of LNG production, the shutdown of the Ras Laffan facility automatically cut the helium supply. Before the conflict, the U.S. Geological Survey estimated that Qatar produced more than one-third of the world’s helium supply. The disruption caused spot prices to double within days and triggered a 45-day inventory countdown for affected industries.

Broader Industrial Impact

The instability in the Middle East has affected more than just the high-tech sector. South Korea’s industry ministry has identified 14 different items in the chip supply chain that are facing severe shortages due to the turmoil.

The disruption extends to other critical global sectors. According to a report from the chief investment office of UBS Global Wealth Management, the instability affects energy prices, food prices, and industrial production, as several key ingredients for fertilizer production also move through the Strait of Hormuz.

The Strait of Hormuz, a narrow chokepoint through which approximately one-fifth of the world’s oil passes daily, was shut by Iran following U.S. And Israeli attacks on February 28, 2026. This closure, combined with targeted strikes on energy infrastructure, has driven crude oil prices above $100 a barrel.

Potential Mitigations and Gaps

Efforts to mitigate these risks involve identifying alternative sources of raw materials. In the United States, bromine is available from companies such as Albemarle and TETRA Technologies in Arkansas.

However, Arkansas bromine cannot be used directly in chip production. It requires conversion into semiconductor-grade hydrogen bromide gas. Currently, the infrastructure to perform this conversion does not exist in the U.S., representing a significant gap in the industrial policy required to secure the semiconductor supply chain against Middle Eastern instability.