Microchip makers around the world are closely monitoring the supply of high-purity quartz after Hurricane Helen shut down production at two mines in North Carolina. Mines provide the lion’s share of the world’s supply of this critical mineral for semiconductor production.
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A hurricane that hit the US East Coast in late September shut down mines in the Spruce Pine area, where more than 80% of the high-purity quartz used in the production of microchips and solar panels is mined. According to the South China Morning Post, Sibelco and Quartz Corp suspended production on September 26, and it is not yet known when work may resume. Local infrastructure was heavily damaged by floods, power outages and communications disruptions. According to authorities, Helen led to the deaths of at least 166 people in six states.
Despite the gravity of the situation, the world’s largest semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Co (TSMC), Samsung Electronics and Infineon Technologies said they were monitoring developments but did not yet expect significant disruption to their operations. TSMC representatives noted that the company still has enough reserves so as not to stop work. South Korean companies Samsung and SK Hynix also expressed confidence that the current situation should not have a significant impact on their work.
TSMC’s suppliers, including quartz processor Topco Scientific, said they are actively reviewing their inventories and are in close contact with all supply chain partners. In turn, GlobalWafers, one of the largest suppliers of silicon to TSMC, noted that their suppliers still have sufficient reserves to uninterruptedly supply the enterprise with quartz crucibles. “The supply chain is sufficiently stable to cope with temporary disruptions at the raw material production level,” GlobalWafers said in a statement. The company emphasizes that it will be able to fulfill all its obligations to customers.
According to BloombergNEF analysts, the suspension of production at Spruce Pine, which produces 20,000 tons per year of high-purity quartz concentrate, could have some impact on global supply chains. In the event of prolonged disruption, it may be possible to accelerate the transition to synthetic alternatives. While the situation remains under control, the industry continues to closely monitor the potential impact of the North Carolina production shutdown.