South Korean chip industry worried Iran crisis to affect Middle East data center plans

South Korea’s chipmakers warn that a prolonged Iran crisis could delay major AI data center projects in the Middle East, potentially dampening robust semiconductor demand. Industry leaders, including executives from Samsung Electronics, also cautioned that disruptions to key materials like helium could impact chip production.

Heejin Kim/Reuters

March 05, 2026

South Korean chip industry worried Iran crisis to affect Middle East data center plans

FILE PHOTO: FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025.

Kim Hong-Ji/Reuters

FILE PHOTO: FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025.

South Korea's chip industry has raised concerns that a prolonged Iranian crisis may deal a setback to plans by big tech firms to build AI data centres in the Middle East, thus weighing on strong chip demand, ruling party lawmaker Kim Young-bae said on Thursday.

The chip industry also raised concerns that the Iran crisis could disrupt supplies of some key chip-making materials like helium from the Middle East, Kim said.

Kim made the comment after meeting with executives from companies such as Samsung Electronics 005930.KS and business and trade groups.

-Heejin Kim/Reuters