TSMC, Samsung, other major chip makers monitor quartz supply after hurricane shut mines

Hurricane Helene halted production at two US mines that produce most of the world’s supply of high-purity quartz, a material critical to making semiconductors

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The affected mining operations in North Carolina account for more than 80 per cent of the world’s supply of commercial high-purity quartz. Photo: Shutterstock

Published: 4:12pm, 3 Oct 2024Updated: 5:35am, 4 Oct 2024

Global semiconductor manufacturers 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) – the world’s largest contract chip maker – and Germany’s Infineon Technologies said in statements they were keeping tabs on the situation, but did not anticipate any significant impact to their operations.

South Korea’s Samsung Electronics and SK Hynix said they also do not expect repercussions. TSMC supplier Topco Scientific Co, which processes quartz, said it is reviewing its inventory and is in close touch with all suppliers.

The impact on the global chip-making sector remains unclear, given semiconductor firms are adept at stockpiling essential components and the operations in North Carolina are expected to eventually resume.

Taiwan’s GlobalWafers, one of the world’s biggest suppliers of silicon to the likes of TSMC, on Thursday became the latest to play down immediate supply concerns.

High-purity quartz is an important mineral used in both the semiconductor and solar industries. Photo: Shutterstock

“Our crucible suppliers have sufficient inventory to meet our needs,” GlobalWafers 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 fulfil committed orders.”