Quartz Supply Crisis: How TSMC and Samsung Electronics are Handling the Situation

Quartz Supply Crisis Following Hurricane Helene

The global semiconductor manufacturers are closely monitoring the supplies of high-purity quartz, a material critical to the industry, as Hurricane Helene has temporarily halted production at two North Carolina mines that produce a significant portion of the world’s supply.

Taiwan Semiconductor Manufacturing Co (TSMC), recognized as the world's largest contract chip maker, along with Germany's Infineon Technologies, have stated they are aware of the situation but do not foresee any major disruptions to their operations. South Korea's Samsung Electronics and SK Hynix echoed similar sentiments, indicating that they do not expect repercussions.

Vigilant Monitoring by Suppliers

TSMC supplier Topco Scientific Co, which specializes in quartz processing, is actively reviewing its inventory to ensure minimal disruption. The significance of the global chip-making sector's resilience shines as history shows semiconductor firms are skilled at stockpiling essential materials.

Notably, Taiwan’s GlobalWafers, a major supplier of silicon to TSMC, recently downplayed immediate supply concerns, affirming in a statement, “Our crucible suppliers have sufficient inventory to meet our needs.” They emphasized their supply chain's capability to manage temporary disruptions.

• Quartz production in the affected North Carolina mines, operated by Sibelco and Quartz Corp, was suspended on September 26.
• The local community is facing severe flooding and power outages, impacting a region responsible for over 80% of the global high-purity quartz supply.
• About 20,000 tons of this highly important mineral are produced annually in Spruce Pine.

Analysts suggest that any prolonged disruption in quartz supply could accelerate the industry's shift toward synthetic alternatives, as highlighted by Jenny Chase, BNEF solar analyst.