Helene hit the town that mines most of the world’s high-purity quartz, threatening the chip industry’s supply
Sifting through the wreckage… Hurricane Helene made landfall in Florida last Thursday, and the storm’s destruction is only starting to come into focus. As of yesterday there were 183 confirmed deaths, and estimates put economic losses at up to $110B. And while Helene’s damage has been widespread, severe flooding in the small town of Spruce Pine, North Carolina, has affected one unexpected industry: semiconductors.
Not just clocks: High-purity quartz is key to the production of chips used in a variety of tech, including AI, smartphones, and cars.
Small town, big supplier: 80 to 90% of the world’s supply of high-purity quartz comes from Spruce Pine.
Major miner problem… Sibelco and the Quartz Corp., high-purity-quartz mine operators in Spruce Pine, said they shut down ahead of Helene and were unsure when they’d reopen. That could create a supply problem for the tech industry, which has been racing to scoop up chips. In July alone, global semiconductor industry sales hit $51.3B — up nearly 19% on the year. Before Helene, the quartz-mining business was booming along with demand for AI chips. Last year Sibelco announced a $200M investment to double its mining capacity in the town.
Chokepoints can become breaking points… With the semiconductor industry relying on Spruce Pine’s quartz mines, the shutdown could affect the entire tech industry. It’s happened before: in 2008, a fire at a Spruce Pine quartz refinery disrupted the global supply. At least one expert said consumers could see the price of electronics pop after Helene.