South Korean semiconductor manufacturers are expressing alarm that ongoing tensions involving Iran could derail major technology companies' plans to construct artificial intelligence data centers throughout the Middle East. The crisis could also disrupt the supply chain for critical chip manufacturing materials like helium that come from the region.
SEOUL – Semiconductor manufacturers in South Korea are voicing alarm that continuing tensions involving Iran could undermine major technology companies’ ambitious plans to establish artificial intelligence data centers across the Middle East region, according to statements made by ruling party lawmaker Kim Young-bae on Thursday.
The concerns were shared during discussions between Kim and leadership from major corporations including Samsung Electronics, along with representatives from various business and trade organizations.
Beyond the potential impact on data center development, South Korean chip manufacturers are also expressing worry that the Iranian situation could create supply chain disruptions for essential materials used in semiconductor production, particularly helium sourced from Middle Eastern countries, Kim reported.
The lawmaker’s remarks highlight how geopolitical tensions in the region could potentially dampen the robust demand for computer chips that has been driven by the artificial intelligence boom and the corresponding need for advanced data processing facilities.
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