Hurricane Helen's devastation in a small area of North Carolina could cause unforeseen problems for the semiconductor manufacturing industry, as nearly all of the world's mineral supplies come from this region.
The “purest form” of quartz is mined Spruce spine has population According to CNBC, that number is just 2,600.
More than a week after storms and devastating floods hit the foothills of the Blue Ridge Mountains, the town's electricity and water are still out, potentially crippling the $600 billion global semiconductor industry. The paper reported that there is.
Before Helene, companies like Sibelco and The Quartz Corp. extracted high-quality quartz, refined it, and shipped it to manufacturing facilities around the world, primarily in China and other Asian countries.
All of these activities have been suspended as Appalachian communities grapple with basic necessities like food and water.
None of the major companies have announced a timeline for when they will be able to resume mining.
“Hurricane Helen had a major impact on North Carolina, USA, and spruce pine communities were particularly hard hit,” Sibelco said on September 30. statementbefore saying that “many people,” including their own employees and families, are facing “displacement.”
The company continued, “We have confirmed that most of our employees are safe and are working hard to contact those who are unreachable due to ongoing power outages and communication disruptions.'' “In response to these challenges, as of September 26th, we are temporarily suspending operations at our Spruce Pine facility.”
“The Spruce Pine region has been particularly hard hit. In response to these challenges, we have temporarily suspended operations at our Spruce Pine facility,” Sibelco said in a Sept. 30 statement.
On the same October 1st statementQuartz Corp. announced, “Operations at our facility have been suspended since September 26th in preparation for the event, and there is no indication when they will resume.”
“This is our second priority. Our top priority remains the health and safety of our employees and their families,” company officials added, saying they had successfully contacted all Spruce Pine employees. said.
TECHCET, a market research firm focused on the semiconductor materials supply chain, points out the significant impact this will have on the industry.
“This is the only factory in the world that currently serves the entire semiconductor industry,” Spruce Pine CEO Rita Shonroy told CNBC. “If something were to happen at these mines, the entire industry would be on alert. We wouldn't have any other capacity.”
The company estimates it will take four to six weeks for the mine to be operational again, but Shonroy said it will depend on how surrounding communities respond to reopening roads and other local infrastructure. he pointed out.
“The road is gone,” said Spencer Bost, executive director of Downtown Spruce Pine.
In some areas of town, “the roads just don't exist anymore,” he said.
Shon Roy added that he hopes the crystal stocks already stocked will provide a two-to-three-month cushion as the industry recovers from the natural disaster.
An industry expert said, “One month's delay is not bad.'' “The second month is getting difficult. The third month will be the real problem.”
Blaze's Andrew Chappados has warned that China will take over the entire semiconductor industry.
“When it comes to semiconductors, China has the second-highest sales share in the world. Any disruption to the U.S. supply chain will, at best, shift the market toward China,” he wrote in an article Friday. article. “If that option is not available, European competitors may be able to pick up the slack, but not at very low prices.”
