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Hurricane Helene has left a critical dent in the global semiconductor industry as it has flooded Spruce Pine, North Carolina, home to the world’s largest supply of high-purity quartz—a key material in semiconductor production, forcing operations to a halt and affecting supply chains globally.
The Quartz Corp. and Sibelco, two major mining companies operating in the area, have temporarily shut down their facilities as they assess the damage. Roads have been washed out, rail lines destroyed, and the power grid is severely impacted, leaving the future of these vital operations uncertain.
“We are in a phase of assessing the situation, and it is far too early to comment on the impact to high-purity quartz production,” said May Kristin Haugen, a representative from Quartz Corp. “Our priority now is people and the families being affected by this terrible storm.”
Supply Chain at Risk
The semiconductor industry is already dealing with supply chain headaches from growing demand for AI and green energy technologies, but things could get even more complicated. Spencer Bost, executive director of Downtown Spruce Pine, referred to it as “the AI spike,” pointing to the increased pressure to get operations up and running again.
Although companies like Quartz Corp. maintain stockpiles of high-purity quartz, any long-term production halt could lead to shortages.
If the shutdowns drag on, the effects could be felt far and wide. According to Ed Conway, who wrote Material World, there’s simply no substitute for the quartz that comes from Spruce Pine. Nowhere else can match the purity or scale of what’s found there.
What makes it harder to assess the damage is the quartz industry’s secrecy. Conway mentioned how secretive the operations are that contractors are sometimes blindfolded before entering facilities to protect trade secrets. Because of this, it could be weeks, or even months, before the full picture comes into focus.
Environmental and Community Fallout
The environmental damage from Hurricane Helene isn’t limited to the semiconductor industry. Spruce Pine, a tight-knit community of just over 2,000 people, has been battered by nearly 24 inches of rain. The North Toe River swelled dangerously, flooding homes and businesses while causing landslides that have left the town isolated. Most of the lower streets, which host the majority of local businesses, were completely submerged, leaving grocery stores and gas stations inoperable.
Residents are grappling with the dual burden of the storm’s immediate destruction and concerns about the environmental hazards posed by the mines. In the past, Quartz Corp. faced violations for chemical leaks, raising fears about potential contamination as floodwaters swept through the area.
Technological Implications and Future Efforts
In the wake of this disaster, the semiconductor industry is likely to explore ways to diversify its supply chains and reduce reliance on a single source of high-purity quartz. With disasters like Hurricane Helene becoming more frequent, industries are facing growing pressure to find resilient solutions.
“I’d imagine that industry would turn to the use of lower-purity material if indeed there is a rippling shortage,” said Jonnie Penn, an associate professor of AI ethics and society at the University of Cambridge. “This is a shame, as the industrial processes required to purify silicon are energy intensive and ecologically damaging. In other words, this tragic encounter with climate instability in North Carolina could have a knock-on effect that exacerbates climate instability elsewhere. It’s a vicious cycle.”
While innovations may help buffer future disasters, the current situation stresses the need for greater resilience across the entire tech supply chain.
