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Iran War Unlikely to Hurt AI Supply Chain for Now, Seagate Says

Avril Hong, Haidi Lun
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A senior Seagate executive stated the Iran conflict won’t disrupt the tech supply chain short-term, easing fears over critical material shortages like helium essential for semiconductor and quantum cooling applications. Investors remain concerned that prolonged Middle East tensions could exacerbate existing shortages of memory chips and storage devices, impacting AI infrastructure reliant on high-capacity data storage solutions. Seagate and WD Corp.—dominating 80% of the hard drive market—reported 2026 inventories are sold out, highlighting pre-existing supply constraints now compounded by geopolitical risks. Helium, vital for MRI machines, fiber optics, and quantum computing, faces no immediate supply threat, though analysts warn of potential long-term volatility if conflicts escalate near key extraction sites. The assessment contrasts with broader market anxieties, as tech firms scramble to secure alternative suppliers amid rising demand for AI-driven data centers and quantum research infrastructure.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:The Middle East conflict won’t significantly hamper the technology supply chain in the short run, according to a senior Seagate Technology Holdings executive addressing concerns that the war could begin to choke off the supply of vital materials such as helium.Some investors worry that a prolonged war might worsen already tight supplies of memory chips and storage devices. That’s weighed on sentiment around Seagate and rival WD Corp., which together supply the majority of hard drives used for long-term storage in data centers and PCs. Both have warned their hard drives are sold out for 2026.

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Source: Bloomberg Technology

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