Hurricane Halts Quartz: Global Tech Faces Ripple Effects from Spruce Pine Disruption
The small mining town of Spruce Pine in North Carolina, which holds over 90% of the global high-purity quartz market, has been heavily impacted by Hurricane Helene, resulting in a temporary halt in quartz mining activities. This disruption potentially affects the global semiconductor and solar industries, which are heavily reliant on this crucial material.
Spruce Pine's mines are primarily operated by two companies, Belgium's Sibelco North America and Norway's TQC. Sibelco, whose products dominate the international high-end quartz market, suspended operations last Thursday, indicating ongoing efforts to contact all employees in the affected region. Similarly, TQC ceased operations on September 26, with no clear timeline for resumption.
Quartz is essential for the semiconductor industry, playing a vital role in the production of solar panels, smartphones, and technologies driving the current AI boom. According to Techcet, the global semiconductor industry expects the quartz market size to reach approximately $2.12 billion this year, with further growth anticipated as wafer fabs expand.
Without high-purity quartz, manufacturing most semiconductor products is unfeasible. Despite availability from Russia and Brazil, Spruce Pine’s quartz stands out for its superior quality and volume. The world’s reliance on this small town’s resources has grown significantly, with Sibelco investing around $700 million to boost production by approximately 60% between 2019 and 2023.
It's noteworthy that the quartz mining industry maintains a high level of secrecy, which could mask the true extent of the impact. It’s estimated that only 30,000 metric tons of high-purity quartz are produced globally each year, with Sibelco closely guarding production figures.
While experts suggest that short-term impacts may not be immediately apparent, prolonged operational halts in Spruce Pine could quickly ripple through the semiconductor industry. Nevertheless, major semiconductor manufacturers, including TSMC and Infineon Technologies, are monitoring the situation, although they anticipate minimal operational effects.
Sibelco and Quartz Corp, both affected by Hurricane Helene, face ongoing challenges without a definite timeline for resuming production. Despite the current setbacks, the industry remains cautiously optimistic regarding supply chain resilience, backed by adequate inventory to manage temporary disruptions.