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Helium Market Faces Headwinds Amid Semis Industry Dynamics

The market for electronic specialty gases, including rare gases like helium, experienced substantial growth in 2022, primarily driven by the expanding semiconductor industry and supply chain challenges caused by the Russian invasion of Ukraine. However, the growth is expected to be short-lived as semiconductor producers slow down production due to demand concerns. Challenges in 2023 include macroeconomic factors, excess inventories, geopolitical developments, and sustainability efforts. The semiconductor industry, a significant consumer of rare gases, is facing high inventories, and a recovery is expected in 2024. The industry is also adapting to new geopolitical realities as regions aim to foster domestic production. Additionally, assessing the environmental footprint and sustainability are becoming crucial considerations in the supply chain.

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