How natural disasters threaten the electronics industry and what does quartz have to do with it?
Quartz is literally under your feet. What's the problem with mining?
The mineral reserves from Spruce Pine, if suddenly unavailable, could be difficult to replace. Why is quartz from this region so valuable?
The ultra-pure mineral in question is used for crucible production. These are containers in which silicon melts at a temperature of about 1,420 °C. Conventional materials are not suitable: they can contaminate silicon, which is critical in semiconductor manufacturing.
Crucibles made of ultra-pure quartz (99.99% purity) are used because this material can withstand thermal shock, extreme temperatures and does not release any substances contaminating the melt. It is chemically stable and does not react with molten silicon.
From the melt according to the Czochralski method grow monocrystalline silicon ingots, which serve as the basis for the production of semiconductor components.
The silicon ingots are then sliced into thin wafers. They, in turn, are the basis for the production of modern microcircuits, including processors, graphics chips, and so on. This makes quartz a key element in the semiconductor industry, assessed at 500 billion dollars.
Experts fear that stopping, even temporarily, ultra-pure quartz mining in North Carolina will have a negative impact on the global electronics industry. Supply disruptions could impact the entire technology sector, where demand for chips has been high since 2020 exceeds offer.
What about other sources? Small amounts of quartz are mined in Russia, Brazil, India and China, but these deposits can't compare in terms of purity and quality of material with the resource from Spruce Pine. That is why manufacturers all over the world prefer material from this town. Supplies from there account for 80 to 90% of the ultrapure quartz used in the global industry.
How serious is the threat?
Spruce Pine quartz mining and processing company Sibelco commentedthat the area suffered severe damage from flooding, power outages and infrastructure destruction. According to preliminary estimates, the production capacity of the quarries is damaged, but not critically. Work on their restoration has been carried out very actively from the very first day after the hurricane stopped raging. However, the exact timing of the resumption of production and supplies at 100% still remains unknown.
Quartz Corporation, another major miner in the area, also reported about production delays. But she expressed confidence that supply disruptions could be minimized.
Despite the optimistic forecasts, experts warn that short-term disruptions could push up semiconductor prices and impact the electronics market.
Silicon wafer manufacturers such as GlobalWafers, Siltronic and Sumco have reserves of ultra-pure quartz for 3–8 months. The reserves provide a means of avoiding an immediate crisis, but if the recovery in Spruce Pine ultra-pure quartz production and supply is delayed, the global semiconductor market could face serious challenges.
The supply chain is already under pressure due to increased demand for semiconductors and electronic systems. Even small delays in the process of restoring production could lead to a shortage of silicon wafers, which in turn will slow down chip production.
In addition to the flooded mines, the region's transport infrastructure was seriously damaged by the hurricane. Even if quartz mining resumes in the coming months, it may take a long time for the industry to return to previous supply levels.
What's the result?
Hurricane Helen demonstrated just how vulnerable the technology industry can be.
“The North Carolina quartz mine flood shows one thing: the semiconductor industry must diversify its supply chains and invest in sustainability. Over-reliance on critical raw materials from a few regions is a recipe for disaster, especially in an era of climate and geopolitical instability. Companies must explore alternative sources of quartz, invest in sustainable mining methods and develop more reliable supply chains.”— asserts Mohammad Sayem, Head of Global Procurement and Supply Chain at Philips.
