Hurricane Helene has revealed a vulnerability in the semiconductor supply chain, as flooding in North Carolina has disrupted the production of ultra-pure quartz, a crucial material for chip manufacturing. The storm caused extensive flooding in Spruce Pine, a town that produces up to 90% of the world’s ultra-pure quartz. This mineral is used to make crucibles that are essential for producing high-grade silicon used in semiconductors.
The interruption in quartz supply could have significant consequences for the production of various electronics, including smartphones, computers, and solar panels. This comes at a time when there is already high demand for advanced chips needed for artificial intelligence processing.
While there are alternative sources of high-purity quartz around the world, none match the same level of purity and accessibility as Spruce Pine. The concentration of this essential material in such a small town with only around 2,000 residents is concerning.
Sibelco, the mining conglomerate operating the largest quartz production facility in Spruce Pine, reported that the area was severely affected by flooding and other storm-related damage. However, they have made significant progress with recovery efforts and expect only minor damage to their operating facilities.
The Quartz Corporation, another mining company in Spruce Pine, stated that it is too early to determine how long it will take to resume production but remains confident about avoiding any disruption to their customers’ supply.
Quartz from Spruce Pine is known as “the only mine on earth with quartz pure enough” to produce crucibles necessary for semiconductor ingots. These ingots are then sliced into thin wafers used as building blocks for chips within the $600 billion semiconductor industry.
Experts predict that Hurricane Helene’s disruption will likely lead to short-term price increases due to limited supply. In addition to flooded mines, transportation infrastructure has also been significantly impacted by storm damage.
While some analysts believe existing inventory can buffer against disruptions until mining activities resume fully again within several months’ time frame; others suggest it may take even longer before operations reach previous capacity levels.
This incident highlights both the fragility of our economic underpinnings and how little attention we pay to places like Spruce Pine until events like this occur.
