Quartz Mine Disruption in Spruce Pine, NC, Threatens Semiconductor Manufacturing

Article Highlights

• Hurricane Helene caused estimated damages of $20 to $34 billion in the Southeastern U.S.
• Spruce Pine, North Carolina, produces 70-90% of the world’s high-purity quartz for semiconductors.
• Sibelco and The Quartz Corp temporarily halted operations in Spruce Pine due to hurricane damage.
• High-purity quartz is crucial for making the fused quartz used in the production process for silicon crystals.
• Companies expect to manage supply needs in the short-term, but prolonged disruptions could affect semiconductor production.

Hurricane Helene May Cost $20-34 Billion in Nominal Damages

In late September, Category 4 Hurricane Helene swept through the Southeastern United States, causing widespread devastation and leaving over 200 people dead. As of early October, hundreds continue to remain unaccounted for. 

The hurricane, which dumped 40 trillion gallons of water across America—the equivalent of Lake Tahoe—inundated towns with severe flooding, landslides, power outages, and other challenges. Initial estimates by Moody Analytics say the damage could cost between $20 and $34 billion in total, making it one of the ten costliest hurricanes in U.S. history (in addition to already being one of the deadliest). 

Spruce Pine: Tiny Town, Major Supplier of High-Purity Quartz

One area hit particularly hard was a North Carolina town called Spruce Pine. The small town, with a population of little more than 2,000 residents, received 24.12 inches of rain over the course of 24 hours. That figure broke the area’s previous record for rainfall, which had stood for over a century (it was set in 1916).

Unlike other small towns facing down the aftermath of Hurricane Helene in relative obscurity, Spruce Pine has drawn significant attention because of its critical role in semiconductor manufacturing.

The High-Purity Quartz Mines of Spruce Pine: Impact Report

Spruce Pine is home to two mines that produce 70-90% of the world’s high-purity quartz. The mines are owned by two companies: Sibelco, a Belgium-based global material solutions company, and The Quartz Corp, a joint venture between French-based Imerys SA and Norsk Mineral AS.

According to Imerys, “the quartz produced in Spruce Pine, North Carolina, USA…offers the world’s highest purity quartz deposits.”

Following the hurricane, both companies halted mining operations to assess the damage and the potential impact on employees. In the days since, they’ve also released official statements regarding the impact of Hurricane Helene on their production in the area.

Company Responses to Hurricane Helene’s Impact on Quartz Mining Operations

Sibelco: Initial Impact to Mining Operations Statement

Sibelco initially announced that the “Spruce Pine community has been hit particularly hard” and that “as of September 26th, we have temporarily halted operations at the Spruce Pine facilities in response to these challenges.”

A later update stated that “initial assessments indicate that our operating facilities in the Spruce Pine region have only sustained minor damage” but that “detailed assessments are ongoing.” The company also added that product shipments have not yet restarted but the company is working towards that. A lack of power to their operations continues to be an ongoing challenge and a critical obstacle to resuming mining operations. 

The Quartz Corp: Initial Impact to Mining Operations Statement

In a statement released October 2nd, The Quartz Corp said that the “damage is mostly concentrated around ancillary units. It is still too early to assess when TQC will resume operations as this will also depend on the rebuilding of local infrastructure.”

The company stressed its confidence in being able to avoid any supply disruptions thanks to “strong levels of feed stock in Norway to supply our purification operations. Coupled with safety stocks of finished products and those that exist at different levels throughout the supply chain, we do not anticipate any critical situation for our downstream industries in the short or medium term.” 

Where is Quartz Used In the Semiconductor Manufacturing Process?

High-purity quartz is used to create “fused quartz, a material with unique optical, mechanical, and thermal properties, which make it indispensable in the manufacture of a wide range of high-tech products.”

Quartz is a key part of the manufacturing process for semiconductor chips used in industrial and commercial technology, including laptops, smartphones, industrial robots, and 5G network infrastructure. 

Fused Quartz’s Application in the Semiconductor Manufacturing Process

Fused quartz plays several vital roles in the semiconductor manufacturing process:

Fused Quartz Crucibles: high-purity quartz is used in a crucial step called the Czochralski (CZ) process, a method for growing large, high-quality silicon crystals (also known as silicon ingots), which are then sliced into wafers and used to make semiconductor chips.

Fused quartz crucibles are an irreplaceable part of the Czochralski method:

“Semiconductor grade silicon has an approximate melting point of 1425°C (2597°F), and this must be maintained throughout the Czochralski process as a seed crystal mounted on a rod is dipped into the molten mix and drawn up out of the crucible. Fused quartz crucibles are one of the only suitable components for the Czochralski method of growing single crystal silicon ingots, owing to their negligible expansion properties and superb resistance to thermal shock. Quartz crucibles also benefit from the additional characteristic of being non-conductive, with a nominal resistivity of 1 x 108 Ω.m at 1000°C.

Fused Quartz Tubing and Ingots: High-purity quartz is also used to produce quartz tubing and ingots, which are essential for creating fabricated quartzware, which is equipment or components made from quartz and used in a number of steps throughout the semiconductor manufacturing process.

While quartz crucibles are highly durable, they’re not always reusable. How many times they can be used often depends on which Czochralski process is being practiced. After enough use, the crucible will begin to suffer impurities and other problems that make it unsuitable for growing further crystal silicon ingots. 

Where Else is Quartz Manufactured Around the World?

While most of the world’s high-purity quartz comes from Spruce Pine, it’s also mined in other areas around the globe, including:

• Bovill Mine in Idaho, USA
• Lighthouse deposit in Queensland, Australia
• White Springs and Quartz Hill mines in Australia

There are also deposits in Mauritania, Russia, Germany, and Norway.

What Does This Mean for Manufacturers?

For electronics manufacturers, the damage to Spruce Pine’s high-purity quartz mines presents potentially significant risks to the semiconductor supply chain. Since quartz is indispensable in the production of semiconductor chips, any disruption to quartz production could slow down chip manufacturing. 

Although both Sibelco and The Quartz Corp have expressed confidence in avoiding immediate supply disruptions thanks to existing stock, a prolonged recovery period or major infrastructure rebuilding projects could eventually impact semiconductor production timelines. Because of the limited reusability of the current stock of quartz crucibles, the longer it takes to resume operations at these mines, the greater the cascade effect the shutdowns will have on the larger chip ecosystem.