Hurricane halts U.S. pure quartz production, threatening global tech supply chain
Hurricane Helene's devastating impact on a small town in North Carolina is feared to have far-reaching consequences for the global technology industry.
SACRAMENTO, United States, Oct. 3 (Xinhua) -- Hurricane Helene's devastating impact on a small town in North Carolina is feared to have far-reaching consequences for the global technology industry, potentially disrupting the supply of a crucial material used in manufacturing computer chips and solar panels.
The town of Spruce Pine was hit by more than 61 cm of rain from Hurricane Helene last week, causing severe flooding and infrastructure damage. The community is home to one of the world's primary sources of high-purity quartz, a critical component in producing silicon chips and solar panels.
The Spruce Pine mining district produces some of the purest natural quartz ever found on Earth. This ultra-pure quartz plays a crucial role in manufacturing the silicon used in computer chips, which power everything from smartphones to artificial intelligence systems.
Spencer Bost, executive director of Downtown Spruce Pine, an economic development organization, told CNN Tuesday that "the level of devastation here is insane."
"We know nothing right now about damage for (the mining companies) right now, but the damage in Spruce Pine is so devastating that I'm not sure when they will have employees able to return," Bost said.
The shutdown of these facilities could have significant implications for the global semiconductor industry. Spruce Pine quartz is used to make crucibles, the containers in which silicon for computer chips is melted. The quartz from this region is so pure that it is used in the production of silicon for the most advanced computer chips.
Two companies operate in the area -- Unimin, a Belgian mining conglomerate Sibelco subsidiary, and The Quartz Corp (TQC). Both have reported that their operations have been halted since Sept. 26 due to the hurricane.
Sibelco, through its Unimin operations, holds a dominant position in the global high-purity quartz market. According to industry reports, the company controls over 90 percent of the market share for high-end quartz sand products with 99.9998 percent purity and above. This level of market control allows Sibelco to maintain significant influence over quartz sand prices.
TQC, another major player in Spruce Pine, is licensed to produce 30,000 tons of high-purity quartz annually in Norway. The company also sources its raw materials from the Spruce Pine deposits, highlighting the critical nature of this location for the global supply chain.
The potential disruption comes when the global semiconductor industry, which is a cornerstone of the global tech sector, is already facing challenges.
The impact of this disruption could extend beyond the tech industry. The same high-purity quartz is also crucial for producing solar panels, potentially affecting the global push for renewable energy.
Local infrastructure has been severely damaged, complicating recovery efforts. The main CSX rail line, which is the primary shipping point for quartz from the mines, has been heavily damaged, further complicating the resumption of operations and distribution.
Experts are divided on how quickly the impact of this disruption will be felt in the global supply chain. Tom Bide, a senior scientist at the British Geological Survey, suggested that manufacturers likely have some stockpiles. "If the issues are temporary, this may have no discernible effect," he said.
However, others, like Jonnie Penn, an associate professor of AI ethics and society at the University of Cambridge, expect more immediate effects. "I would be surprised if there were not a flinch felt, if not more," Penn told Wired, a monthly American magazine.
The potential shortage of high-purity quartz could force the industry to turn to lower-purity materials, which require more energy-intensive and ecologically damaging purification processes.
"This tragic encounter with climate instability in North Carolina could have a knock-on effect that exacerbates climate instability elsewhere. It's a vicious cycle," Penn added.
As relief efforts continue in Spruce Pine, the global tech industry is watching closely, aware that the fate of this small Appalachian town could have outsized effects on the production of the devices that power the modern world. ■
