The recent devastation caused by Hurricane Helene, the deadliest hurricane to hit the US mainland since Hurricane Katrina, is raising concerns about disruptions to the technology sector. The storm has severely impacted a key supply chain in a North Carolina mining town that provides high-purity quartz, essential for producing semiconductor chips used in smartphones and data centers globally.
Spruce Pine, a significant quartz mining community, has been severely affected by Hurricane Helene, which resulted in over 200 fatalities across multiple states, displacing thousands and leaving more than a million residences and businesses without power. The storm’s effects extended inland over 900 kilometers from the Florida coast, causing destructive floods in various regions, including the Blue Ridge Mountains of North Carolina, where the quartz mines are situated.
Here’s what you need to know about the potential impact of Hurricane Helene on the technology industry.
The Importance of High-Purity Quartz
High-purity quartz is critical in the production of fused-quartz crucibles, essential components in semiconductor manufacturing, capable of withstanding the high temperatures needed to melt silicon. Semiconductor-grade polysilicon melts at approximately 1425°C (2597°F), while quartz crucibles can typically endure temperatures up to 1650°C (3000°F).
During the chip manufacturing process, these fused-quartz crucibles are filled with molten silicon, where a seed crystal is submerged to grow into a larger silicon ingot, which can weigh over 500 kilograms. Subsequently, these ingots are sliced into silicon wafers that are patterned with transistors to form the backbone of modern computer chips.
Origins of High-Purity Quartz
The quartz deposits found in Spruce Pine were formed over 300 million years ago during the collision of North America and Africa, which created the supercontinent Pangaea. This geological event led to the formation of the Appalachian Mountains and caused significant changes in the Earth’s crust, resulting in the formation of pegmatite rock deposits rich in high-purity quartz.
Hurricane Helene’s Impact on Quartz Mining Operations
Quartz mining operations in the Spruce Pine district, managed by Sibelco and The Quartz Corp, were halted on September 26. The companies have confirmed the safety of their staff and reported minimal direct damage to their facilities.
“Initial assessments indicate our operating facilities in the Spruce Pine region sustained only minor damage,” stated Sibelco. The company is actively working on cleanup and repair efforts to resume operations quickly.
The Quartz Corp also reported mostly minor damage, cautioning that the resumption of mining is contingent upon the restoration of local infrastructure, as many roads in the area were compromised by the storm.
Furthermore, power outages pose a challenge for operations, with Sibelco noting that restoring electricity is vital for resuming activities. The Quartz Corp has secured stockpiles of quartz and safety reserves of finished products to prevent significant shortages for customers, including semiconductor manufacturers.
Risk of Semiconductor Supply Disruption
Leading semiconductor manufacturers have stated that they do not anticipate significant disruptions following Hurricane Helene. TSMC, the world’s largest chip manufacturer, emphasized its diversified global supplier network and effective risk management practices. Samsung Electronics and GlobalFoundries also reported that their operations remain unaffected.
Current stockpiles of silicon wafers are projected to last between three to eight months, ensuring supply security in the short term.
Alternative Sources of Quartz for the Semiconductor Industry
While Spruce Pine is noted for its unique combination of purity and availability, alternative high-purity quartz mines exist in regions such as China, Russia, and Brazil. Although natural deposits are limited, companies are exploring purification methods and synthetic quartz production. Additionally, Ferroglobe has acquired a high-purity quartz mine in South Carolina, with mining operations expected to commence in the latter half of 2024.
