Hurricane Helen recently devastated parts of the southeastern U.S., including North Carolina, where it caused significant damage to two key quartz mines critical to global semiconductor production. These mines, located in Spruce Pine and operated by Sibelco North America and The Quartz Corp, are the world’s largest suppliers of ultra-pure quartz, an essential material used to manufacture silicon wafers for semiconductors.

The hurricane, which has claimed over 160 lives and left more than 1.3 million people without power, brought over two feet of rainfall to the Spruce Pine area, triggering severe flooding. While the mines themselves remain intact, transportation routes and infrastructure, including the crucial CSX rail line, have been heavily damaged, raising concerns about the global semiconductor supply chain.

Spruce Pine’s ultra-pure quartz is indispensable for creating crucibles used in the production of high-purity silicon wafers. Semiconductor manufacturers rely heavily on this material due to its rarity and quality. Although quartz deposits exist in other countries, such as Russia and Brazil, the high-purity quartz from Spruce Pine is considered the best in the world.

Sibelco and The Quartz Corp had already paused operations before the hurricane’s landfall on September 26. Sibelco issued a statement confirming that while the mines have temporarily shut down, they are focusing on ensuring the safety of employees. The Quartz Corp has also acknowledged facing significant challenges related to flooding and downed power lines, but it remains unclear when production will resume.

Experts emphasize that any long-term disruption in quartz production from Spruce Pine could have serious consequences for the semiconductor industry, as alternative materials have yet to meet global demand. Semiconductor manufacturers are believed to have stockpiles of high-purity quartz, but those reserves could be depleted within months if the mines remain offline, further exacerbating global supply chain issues.

In recent years, the global demand for semiconductors has surged, leading to an increased need for high-purity quartz. Sibelco had previously announced plans to double its Spruce Pine production capacity with a $200 million investment and had planned an additional $500 million investment between 2024 and 2027. However, the impact of Hurricane Helen may delay these expansion efforts.

As the semiconductor industry faces growing concerns over supply chain resilience, the damage from Hurricane Helen underscores the vulnerability of key resources like ultra-pure quartz to natural disasters. Experts warn that without a swift recovery, the ripple effects could be felt across multiple industries dependent on semiconductor production, including electronics, automotive, and telecommunications.