The Iran war causes chip supply chain concerns – but AI not so much
Helium and shipping could further constrain semiconductor manufacturing, but AI energy worries abated overnight.
Markets on Tuesday largely shrugged off fears that chip manufacturing could take a hit if the Gulf does not stabilise – and a dip in energy prices reduced concerns about increased costs for AI workloads.
The semiconductor market is especially vulnerable to the US-Israel war with Iran as its supply chain relies on raw materials shipped in part from the region.
According to Reuters, South Korean lawmaker Kim Young-bae told reporters last week after meeting with Samsung and chip trade groups that officials "raised a possibility that semiconductor production could be disrupted if some of these key materials cannot be sourced from the Middle East.”