(Bloomberg) — Global semiconductor makers are monitoring supplies of high-purity quartz, a material critical to the industry, after Hurricane Helene halted production at two North Carolina mines that produce most of the world’s supply.
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Taiwan Semiconductor Manufacturing Co. — the world’s largest chipmaker — and Germany’s Infineon Technologies AG said in statements they were keeping tabs on the situation but didn’t anticipate any significant impact to their operations. South Korea’s Samsung Electronics Co. and SK Hynix Inc. said they also don’t expect repercussions. TSMC supplier Topco Scientific Co., which processes quartz, said it is reviewing its inventory and is in close touch with all suppliers.
The impact on the global chipmaking sector remains unclear, given semiconductor firms are adept at stockpiling essential components and the operations in North Carolina are expected to eventually resume. GlobalWafers Co., one of the world’s biggest suppliers of silicon to the likes of TSMC, on Thursday became the latest to play down immediate supply concerns.
“Our crucible suppliers have sufficient inventory to meet our needs,” the Taiwanese company said in a statement. “The supply chain is resilient enough to manage a temporary disruption in upstream material. Adequate inventories are maintained throughout, and we do not anticipate any impact on our ability to fulfill committed orders.”
North Carolina quartz miners Sibelco and Quartz Corp. both suspended operations on Sept. 26 and said it’s too early to say when production will resume. Helene severely hit their community, which is struggling with flooding and power and communication outages. At least 166 people died across six states from the storm.
The mines are near Spruce Pine, a small town an hour north of Asheville, North Carolina that’s one of the most important global suppliers of quartz. The two operations account for more than 80% of the world’s supply of commercial high-purity quartz, BloombergNEF said in a report last year.
About 20,000 tons a year of extremely high-purity quartz are produced at Spruce Pine, BNEF solar analyst Jenny Chase said in a note on Tuesday. The mineral is important to both the solar and semiconductor industries, because it’s used to make the inner layer in crucibles, she said, adding that a prolonged disruption in supply could accelerate the adoption of synthetic alternatives.
–With assistance from Debby Wu.
(Updates with comment from GlobalWafers from the third paragraph)
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