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.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — the world’s largest chipmaker — and Germany’s Infineon Technologies AG said in statements that they are keeping tabs on the situation, but do not anticipate any significant impact to their operations.
South Korea’s Samsung Electronics Co and SK Hynix Inc said they also do not expect repercussions. TSMC supplier Topco Scientific Co (崇越), which processes quartz, said it is reviewing its inventory and is in close touch with all suppliers.
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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 (環球晶圓), one of the world’s biggest suppliers of silicon to companies such as TSMC, yesterday 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,” it said.
North Carolina quartz miners Sibelco Group and Quartz Corp suspended operations on Thursday last week and said it was too early to say when production would resume. Helene severely hit their community, which is struggling with flooding, and power and communication outages. At least 166 people have died across six US states from the storm.
The mines are near Spruce Pine, a small town an hour north of Asheville, North Carolina, that is one of the most important global suppliers of quartz. The two operations account for more than 80 percent of the world’s supply of commercial high-purity quartz, BloombergNEF said in a report last year.
About 20,000 tonnes 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 the solar and semiconductor industries, because it is used to make the inner layer of crucibles, she said, adding that a prolonged disruption in supply could accelerate the adoption of synthetic alternatives.
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