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Why it matters: The pandemic demonstrated how supply chain disruptions could impact technology worldwide. Since then, natural disasters and other events that could affect crucial regions have drawn increased attention. While the situation in the southeastern United States following Hurricane Helene continues to develop, observers have confirmed that an important component of semiconductor production lies in one of the worst affected areas.
Photos of the destruction following Hurricane Helene revealed significant damage and potential loss of life in Spruce Pine, North Carolina. The small mining town hosts the world's only known source of pure quartz, a necessary component for manufacturing computer chips.
Hurricane Helene unleashed catastrophic rain, wind, and flooding across several southeastern states. As of Monday, the death toll has exceeded 130, and around 600 people remain unaccounted for. Mountainous regions of western North Carolina saw particularly severe damage, with over 40 confirmed dead amid the state's worst flooding in a century.
Pictures and video courtesy of Richard Crouse and the Let's talk Spruce Pine FB group. The rural area of the mountains has been absolutely decimated by Hurricane Helene. People are stranded. This is a dire situation. @WRAL @ABC11_WTVD @WLOS_13 pic.twitter.com/FeqG2jbK89
– kelciecrouse (@kelciecrousee) September 28, 2024
In many areas, including Spruce Pine, flooding has destroyed buildings, roads, and bridges, isolating towns and stranding residents. Although the safety of those affected remains the primary concern, questions have begun swirling regarding the status of two mines in Spruce Pine.
The facilities, owned by Sibelco, extract and process quartz, which is needed to manufacture the crucibles that companies like TSMC use to refine silicon wafers. Computers, tablets, smartphones, and other electronics worldwide contain quartz originating in Spruce Pine. Solar panels also depend on the material.
A house floating down the river in Spruce Pine, NC. My family and I are safe. But major damage to my home and the whole neighborhood. pic.twitter.com/yeCkPnDlKX
– American Muckrakers (@AmericanMuck) September 30, 2024
Alternative sources exist, but none exhibit the purity of the quartz from Spruce Pine, which resulted from the collision of North America and Africa hundreds of millions of years ago. Ed Conway from Sky News claimed that operational stoppages at Spruce Pine would significantly disrupt global semiconductor supply chains for a few years as manufacturers develop other methods of processing quartz.
The status of the mines remains unclear, as authorities are still assessing the situation. However, photos and eyewitness descriptions indicate severe flooding in the town. Roads into the town are narrow, and at least some of them have been flooded and washed away, complicating efforts to deliver aid and likely disrupting quartz exports.
Hurricane Helene isn't the first natural disaster of 2024 to generate concern around technology supply chains. In April, Taiwan suffered a 7.4 magnitude earthquake, causing a brief pause in TSMC's operations. Such incidents could potentially derail the delicate process of fabricating semiconductors.