Mideast conflict dents chip manufacturing

Ripple effects hit auto sector in particular

- LAMONPHET APISITNIRAN

The US and Israeli military operations against Iran are sending shockwaves through global supply chains, with semiconductor manufacturing taking a heavy hit and creating ripple effects for industries heavily reliant on chips, particularly the automotive sector.

Thailand's car industry is monitoring developments closely.

Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand, said the shortage of chips could slow production and push up costs.

"The chip shortage will affect car production, leading to manufacturing slowdowns and higher operating costs amid oil price volatility. Cars will eventually become more expensive," he warned.

A key factor behind the crisis is helium. Attacks on Qatar's Ras Laffan facility — one of the world's largest helium hubs — have knocked out about one-third of global supply, according to media reports.