China's 10 July helium export prohibition has no stated expiry date

China's Ministry of Commerce and the General Administration of Customs issued Announcement No. 29 of 2026 on 10 July. It placed helium under customs commodity code 2804290010 under a temporary export prohibition, effective the same day with no grace period. The notice sets no licensing process, no country exemptions and no transition arrangements for existing contracts. It says later adjustments will be announced separately. LawStreet Journal reported the announcement was issued under the authority of the Foreign Trade Law. Geopolitechs noted the notice relies only on that law and does not cite the Export Control Law, Customs Law or rules on dual-use exports.

Why chipmakers watch helium

BigGo Finance cited a Deutsche Bank research report that put semiconductor manufacturing at 21% of global helium demand. The Compressed Gas Association told CBS News the industry consumes one-fifth, or 20%. Garrison Ventures said in an October release that the semiconductor industry is the fastest-growing consumer of helium, driven by AI processors and high-bandwidth memory. In a fab, helium's main job is wafer cooling. During plasma etching, a thin layer sits between the wafer and the electrostatic chuck and carries heat away. If temperature control drifts, the wafer can deform and yields can fall, Geopolitechs reported.

EUV tools and rising volumes

A single EUV lithography system typically uses more than 10,000 litres of helium a year, ESM China reported. Liquid helium is the only medium that holds its superconducting magnets and optics at 4 K. A temperature swing of more than 0.1C can distort the lithography and scrap an entire wafer batch. Helium use per wafer rises with each process generation: about 24 litres at 90nm and above, 40 to 60 litres at 14nm to 28nm, around 120 litres at 7nm and more than 150 litres at 3nm.

China's small output, large trade role

US Geological Survey figures cited by Geopolitechs put global helium production at about 190 million cubic metres in 2025. The US produced about 81 million cubic metres and Qatar 63 million; together they accounted for roughly three-quarters of global output. Mydrivers cited USGS data as of March 2026 showing China's output at about 3 million cubic metres a year, or 1.6% of global supply, ranking sixth with Poland. LawStreet Journal estimated that 15 to 20 percent of global helium transits Chinese intermediaries to Europe and Southeast Asia. BigGo Finance cited 2024 data listing the EU, Japan, France, South Korea and the US among markets that bought helium from China.

The shortage the prohibition entered

Qatar is the second-largest producer of commercial helium after the US, CBS News reported. Garrison Ventures said Qatar normally accounts for about one-third of world supply. LawStreet Journal dates the US-Israel war on Iran to 28 February 2026. CBS News reported that the February closure of the Strait of Hormuz trapped one-third of global helium supply in the Persian Gulf. Iranian strikes hit Ras Laffan, Qatar's helium-producing facility, in March. The Qataris said Ras Laffan would need at least three years to return to full operation; the facility did not respond to requests for comment on damage to its helium infrastructure. LawStreet Journal reported damage to Qatar's facilities is expected to cut its helium export capacity by about 14% even after partial operations resume. Rich Brooke, whom CBS News described as a former Air Liquide executive, told the network that spot helium prices have tripled since the war began. Garrison Ventures later said its president, Richard Brook, appeared in the segment. US Census Bureau export data cited in the report showed US helium exports up 70% since the war began. Russia imposed temporary helium export controls in April, requiring government approval for exports outside the Eurasian Economic Union until the end of 2027, LawStreet Journal reported. ESM China said the global supply gap briefly exceeded 40%.

"If you can tell me what's going to happen in the Strait of Hormuz between now and three months from now, I can tell you exactly what'll be happening in the helium business. Unfortunately, you can't, and so I can't," Brooke said.

Why a fab cannot simply switch

Geopolitechs reported that nitrogen or argon can replace helium in some processes, but switching gases on an advanced line can require tool modifications, process qualification and months of testing. It said large chipmakers usually hold inventories and sign long-term contracts, so a shortage does not shut a fab overnight. Once inventories fall below the minimum needs of critical equipment, fabs may slow production, prioritize their most valuable products or idle individual tools.

China's import dependence

China imports more than 85% of its helium, mostly from Qatar and Russia, ESM China said. Geopolitechs put the figure at more than 80% and said Qatar supplied more than half of China's imports in recent years. CBS News reported on 18 October that industries were feeling the impact with no end to the war in sight, and that companies in South Korea, Taiwan and Singapore are turning to the US for helium. It is not clear how long the US can meet that demand.