The effects of the federal government's failures in disaster relief indicate a much larger problem than appears on the surface. Natural disasters can eliminate or, at best, shift key resources from one source to another, thereby significantly raising prices for Americans.
Spruce Pine, North Carolina, is causing economic panic after it was revealed that a Sibelco North America facility that mines ultra-high-purity quartz is located in the flooded area of Hurricane Helen.
Quartz is used to refine wafers used in semiconductors and microchips. Semiconductors themselves are used in almost every household appliance, including computers, phones, and appliances.
report and an X thread popped up sound the alarm The entire industry could come to a standstill as a result of the North Carolina plant closure.
The alleged geologist said, “Spruce Pine is the only producer of ultra-high purity quartz for the crucibles on which all the world's semiconductor production depends, making it vulnerable to future global economic catastrophes.'' I am concerned about the possibility,” he wrote.
“All semiconductor production could stop within six months. The entire world economy depends on spruce spine,” he said. added.
This fear was the driving force of the story until contradictory threads were written and it became clear that there were other sources. purification as well as others mine And stockpiles. In fact, there is reportedly another mine in South Carolina.
There was a high-purity quartz mine obtained By Ferroglobe in 2023.
As the X-Account Semi-Analysis noted, existing inventory and alternatives could act as a “buffer” if the industry is hit by recent hurricanes.
This does not mean that the industry is in the best condition if such a disaster occurs. But the study makes clear that unless America's strategic infrastructure is strengthened, consumers will suffer in the marketplace.
This was clearly evident during COVID-19, when the United States became overly dependent on drug manufacturing from China. In fact, this was an issue even during the Trump administration. 2019.
Gary Cohn, President Trump's chief economic adviser, wrote at the time that 97% of all antibiotics in the United States come from China.
“If you are Chinese and you really want to destroy us, stop sending us antibiotics,” he said. council on foreign relations.
When it comes to semiconductors, China 2nd highest share of worldwide sales. At best, a disruption to the U.S. supply chain would shift markets toward China. If that option isn't available, European competitors may be able to pick up the slack, but the prices won't be any lower.
There is nothing more horrifying than the situation surrounding microchips from Taiwan. The smaller the chip, the more likely it is to come from that area. According to forbesTaiwan is responsible for 92% of the production of logic semiconductors with components smaller than 10 nanometers.
Since the 1980s, when most of the semiconductor production power was within the United States and Europe, production has been moved overseas, leaving fragile and overly dependent supply chains vulnerable to collapse from one disaster, political move, or worse. However, there is a possibility that you will not be able to afford it financially.
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