Iran Conflict Threatens Semiconductor Supply Chain

The Iran conflict is widely read as an oil price event. For tech investors it is something more specific and more dangerous: a targeted disruption to two specialty inputs (helium and bromine) that are non-substitutable in semiconductor manufacturing and cannot be stockpiled indefinitely. 

Iran conflict

“Our Base Case: Partial de-escalation over the next few weeks, with Strait of Hormuz shipping resuming ahead of helium supply normalization. Fade the relief rally in consumer tech; stay long AI hardware and Malaysian names with structural order backlogs. 

“We maintain Overweight on the Sector with Vitrox (BUY – RM5.30), MI Technovation (BUY – RM4.20) and Frontken (BUY – RM4.60) as our top picks,” Apex Research analysts say.

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