US designates helium a critical material, citing its importance for semiconductors

The US Department of Energy said on Friday that Energy Secretary Chris Wright has designated helium as a critical material under the Energy Act of 2020^1,2,3. The department said the designation advances the Trump administration’s aims².

Helium joins fluorine as the only gases on the list⁵. The move cites helium’s importance for semiconductors and for semiconductor supply chains^3,6,9. It follows a 60 Minutes report on a supply chain crisis in the gas⁷.

Why it matters to investors

By law, materials the Energy Department defines as critical must face a high risk of supply chain disruption and serve an essential function⁷. Helium is now treated in the same way as other materials the department judges to meet that test^2,7. The designation comes amid significant disruption to global helium supplies, a step the trade press said could open the door to further action⁸.

Wright said the administration was seeking to reduce dependence on foreign sources of critical materials⁴. He said the administration was freeing America from reliance on foreign sources of such materials^5,6. These are the administration’s own descriptions of its aims, and the reports do not assess how quickly any new supply could come on stream^4,6.

Helium makes balloons rise, but that is not why the Energy Department is interested in it⁹. Its importance for semiconductors is the reason the department cited^6,9. For chipmakers and the supply chains that serve them, the designation marks helium as a material whose supply the government now treats as at risk^3,7.

What to watch

The shortage is not confined to the United States. Europe faces its own helium supply squeeze, which adds to competition for available gas⁴. The global disruption to supplies is the backdrop to the US decision^5,8.

The next questions are what support follows the label, and how quickly. A critical material designation can lead to further steps on domestic supply, but the reports do not yet describe specific funding or projects^2,8. For now, the designation is a label tied to supply risk rather than a programme with a stated budget^7,8. Semiconductor makers and industrial gas suppliers will watch for those details, and for any easing in the global shortage that prompted the move^3,8.