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American Focus > Blog > Tech and Science > Will semiconductor production be derailed by Hurricane Helene?
Tech and Science

Will semiconductor production be derailed by Hurricane Helene?

Last updated: October 6, 2024 1:42 am
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Will semiconductor production be derailed by Hurricane Helene?
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Constructing a semiconductor chip

IM Imagery/Shutterstock

The devastating impact of Hurricane Helene, the deadliest hurricane to hit the US mainland since Hurricane Katrina, has raised concerns about disruptions in the tech industry. The storm’s aftermath has put a major supply chain at risk – the North Carolina mining town of Spruce Pine, which supplies high-purity quartz essential for manufacturing semiconductor chips used in smartphones and data centers globally.

As Hurricane Helene wreaked havoc across multiple states, including North Carolina, where Spruce Pine is located, the tech industry is bracing for potential repercussions.

Here’s a closer look at how Hurricane Helene’s aftermath could affect the tech industry:

Significance of High-Purity Quartz

High-purity quartz plays a crucial role in the production of fused-quartz crucibles used in chip manufacturing. These crucibles can withstand the extreme temperatures required to melt silicon, a key component in semiconductor production. The process involves filling the crucibles with molten silicon, growing silicon ingots, and eventually slicing them into silicon wafers for chip fabrication.

Origin of High-Purity Quartz

The high-purity quartz deposits in Spruce Pine trace back to geological events that occurred millions of years ago when North America and Africa collided, forming the Appalachian mountains. The intense heat and pressure from this collision led to the creation of pegmatite rock deposits containing high-purity quartz.

Impact on Quartz Mining Operations

Following Hurricane Helene, quartz mining and refining operations in Spruce Pine, owned by companies like Sibelco and The Quartz Corp, were temporarily shut down. While the facilities sustained minor damage, the companies are focusing on cleanup and repair efforts to resume operations. The rebuilding of local infrastructure and restoration of power are crucial for mining operations to resume fully.

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Hurricane Helene caused record flooding and damage

Melissa Sue Gerrits/Getty Images

Assessment by Semiconductor Manufacturers

Despite the disruption in quartz supply from Spruce Pine, major semiconductor manufacturers like TSMC, Samsung Electronics, and GlobalFoundries have stated that their operations remain unaffected. They have diversified suppliers and stockpiles to mitigate any potential shortages.

Companies producing raw silicon wafers have confirmed ample stockpiles to sustain operations for several months. Additionally, alternative sources of high-purity quartz in countries like China, Russia, and Brazil, along with synthetic production methods, offer contingency plans for the semiconductor industry.

Overall, while the impact of Hurricane Helene on the tech industry is substantial, the resilience and adaptability of semiconductor manufacturers and the availability of alternative resources suggest that the industry is well-equipped to navigate through this challenging period.

Exploring Alternative Sources

While Spruce Pine remains a significant source of high-purity quartz, other regions like China, Russia, and Brazil also harbor deposits of this essential mineral. Companies are exploring purification techniques and synthetic production methods to ensure a stable supply chain for semiconductor manufacturing.

One such initiative is Ferroglobe’s acquisition of a high-purity quartz mine in South Carolina, with plans to commence mining operations in the near future.

TAGGED:derailedHeleneHurricaneProductionSemiconductor
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