Helium demand to double by 2035, tracking chip production boom, report says

Linde

09/09/2024 13:59

Sept 9 (Reuters) - The global demand for helium is
likely to nearly double by 2035, backed mostly by a rise in
demand from the semiconductor industry due to the lack of viable
alternatives, according to a report by market research firm
IDTechEx.
    Global demand could exceed 322 million cubic meters by 2035
for the gas used widely in manufacturing due to its cooling and
inert properties, said the report, released in August.
    
    WHY IT'S IMPORTANT
The global semiconductor market is expected to grow by 13.1% in
2024, according to World Semiconductor Trade Statistics, amid a
strong demand from artificial intelligence applications.
        Helium is essential for heat management during
semiconductor production and it has no viable alternatives
currently.  
  
    As the gas is a finite resource, the total global reserves
could run out at a much faster rate due to rising demand from
industries such as AI, quantum computing, telecoms, aerospace
and electric vehicles, according to the report.
    
    CONTEXT
    Production of helium, the second lightest element after
hydrogen, is expected to rise with Qatar and Russia ramping up
their output, the report said. However, there was no guarantee
of a disruption-free supply due to geopolitical tensions, the
report added.
    Air Products  APD.N , Linde  LIN.O  and Air Liquide
 AIRP.PA  and the privately-held Zephyr Solutions are some of
the biggest helium-producing companies in the world.
    
    BY THE NUMBERS
    Global helium production averaged about 160 million cubic
feet between 2019 to 2023, according to the report. 
    Demand for the gas is likely to rise five-fold in the
semiconductor industry, the report said.  
    Helium is only produced in a handful of countries, with the
U.S. and Qatar among the leading players in the industry. 
    In 2023, the estimated U.S. sales of grade-a helium and
gaseous helium was an estimated 2.8 billion cubic feet valued at
about $1.1 billion, according to the U.S. geological survey
data.
       

 (Reporting by Sourasis Bose in Bengaluru; Editing by Janane
Venkatraman)
 ((Sourasis.Bose@thomsonreuters.com;))