KUALA LUMPUR, March 18 (Reuters) - Semiconductor firms in Malaysia are monitoring risks from disruptions to helium supplies due to the conflict in the Middle East, though the situation has not caused any operational interruptions so far, an industry executive told Reuters. 

Helium prices have risen sharply due to the disruption of natural gas processing in Qatar by the U.S.-Israel war against Iran. Helium - critical for industries such as semiconductors and medical imaging - is a byproduct of LNG processing, and any slowdown in output is expected to affect global supplies.

* Wong Siew Hai, the president of the Malaysia SemiconductorIndustry Association, said most chipmakers globally, includingthose with operations in Malaysia, have inventories anddiversified sourcing that reduce immediate risk. * "While the current situation has heightened awareness andheightened risk monitoring, it has not yet translated into clearreported supply disruptions for Malaysian semiconductoroperations," he said. * "However, Malaysian chipmakers are likely watchingdevelopments and managing risk through diversified sourcing,inventory buffers, and supply chain engagement, similar to theirregional peers," he said.  * Malaysian companies that focus heavily on packaging,testing and assembly are less exposed to helium supply risks andcan mostly operate with nitrogen, Wong said.  * Malaysia is home to suppliers and factories servingsemiconductor makers like Intel Corp and Europe's Infineon andSTMicroelectronics. About 7% of the world's semiconductor tradepasses through the country, which also accounts for about 13% ofglobal chip assembly, testing and packaging.  * Fitch Ratings said in a note on Tuesday that Asia'ssemiconductor supply chain faces rising risks from helium supplystrains as the Iran conflict drags on, with credit risk toworsen if the shortages exceed inventory buffers.