Hurricane Helene has caused significant disruption to the global semiconductor supply chain by severely impacting operations at the quartz mining facilities in Spruce Pine, North Carolina, a critical source of high-purity quartz essential for semiconductor manufacturing.
The hurricane, which brought over two feet of rain, has led to catastrophic flooding in the area, resulting in the shutdown of production at key facilities operated by Sibelco and Quartz Corp since September 26.
Spruce Pine is known for producing 70% to 90% of the world’s high-purity quartz, which is vital for creating silicon wafers used in semiconductor chips. The flooding has compromised infrastructure, including roads and rail lines, making it difficult to transport materials even if operations can resume.
Sibelco has issued “force majeure” notices to its customers, indicating that they may not fulfill orders due to these unprecedented disruptions.
Both Sibelco and Quartz Corp have confirmed that their operations remain halted as they assess the extent of the damage. Sibelco reported that it is prioritizing the safety and well-being of its employees while working with local authorities to restore basic services. The company has not provided a timeline for when production might resume.
The disruption in quartz supply could exacerbate existing challenges within the semiconductor industry, potentially leading to increased prices for tech products and contributing to inflationary pressures.
The last significant disruption at Spruce Pine occurred in 2008 due to a fire, which sent shockwaves through the silicon market and affected the availability of both semiconductors and solar panels. Given the current heightened demand for semiconductors driven by advancements in technology such as artificial intelligence and 5G connectivity, any prolonged supply issues could have severe consequences for multiple industries.
