A STUDY ON HELIUM SUPPLY CHAIN DISRUPTION IMPACT UPON SCALING INDIAN SEMICONDUCTOR CHIP PRODUCTION

Abstract

India’s ambition to emerge as a global semiconductor manufacturing hub under initiatives such as the Semicon India Mission faces a critical supply-side challenge due to disruptions in the global helium supply chain. Triggered by geopolitical instability in West Asia, particularly disruptions at Qatar’s Ras Laffan complex, the availability of helium—an essential input in wafer cooling, leak detection, and plasma etching—has significantly declined, leading to cost escalations and supply uncertainty. This study investigates the impact of helium supply disruptions on the scalability of India’s semiconductor chip production. A mixed-method approach was adopted, combining primary data collected from 67 semiconductor professionals across fabrication, assembly, and testing segments with secondary industry reports. The findings reveal that the immediate impact on India’s semiconductor production remains limited (≤5%), primarily due to the dominance of assembly and testing operations, which have minimal helium dependency. However, wafer fabrication units such as ISRO-SCL and CDIL Semiconductors exhibit higher vulnerability. The study further indicates that existing helium inventories may sustain operations in the short term, but prolonged disruption beyond six months could result in scaling constraints of up to 30–35%. The research highlights a critical gap in India’s semiconductor supply chain resilience and underscores the need for strategic interventions, including diversified sourcing, helium recycling technologies, and the development of domestic reserves. These findings provide timely insights for policymakers, industry stakeholders, and investors to mitigate risks associated with supply chain shocks in India’s evolving semiconductor ecosystem.