SHANGHAI, March 26 (Reuters) - Tightened supply of

helium due to the Middle East conflict has started affecting

some production in the global tech supply chains, leaving

companies scrambling to secure alternative supplies, industry

executives said.

Helium is used in several key stages of chipmaking, including

cooling, leak detection and precision manufacturing processes,

and its prices have soared since the Middle East crisis began.

Supply of helium, a byproduct of natural gas processing, is

highly concentrated geographically, with Qatar producing nearly

one third of world supply, according to data from the U.S.

Geological Survey.

"A helium shortage is an absolute concern," said Cameron

Johnson, senior partner at supply chain consultancy Tidal Wave

Solutions, at Semicon China in Shanghai, one of the industry's

largest annual gatherings.

He said companies had few immediate options beyond slowing

output and prioritising critical products, adding that many were

hoping for a quick resolution.

Prolonged shortages could force production cuts and ripple

through industries from electronics to automobiles, Johnson

added.

"As there's a shortage, companies might start slowing

production or ultimately shutting production down, making

chips," he said.

"If that happens, you will see an impact on things like

electronics, automobiles, even smartphones."

Jerry Zhang, China sales head at Swiss semiconductor components

firm VAT, said the conflict in the Middle East had tightened

helium supply and was already affecting production at his and

other companies, adding that transport delays were compounding

the impact.

The company is seeking alternative sources, including from

the United States.

The disruption is also spilling over into broader supply

chains linked to the region. Zhou Limin of Mycronic's MRSI unit

said some raw materials sourced from Israel had seen delays,

extending delivery times and feeding through to customers as

suppliers' lead times lengthened.

"There has definitely been a short-term impact, and it has

already affected us," Zhou said.

An executive at French industrial gases group Air Liquide

also warned on Wednesday of a short-term helium

shortage.