Car industry faces choke point as US hurricane shuts down critical microchip mine

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Global supplies of microchips that feature in cars and smartphones have been threatened after the US hurricane Helene forced the closure of a mine that is critical to production.

Flooding and power outages caused by the hurricane have shut down mining and processing operations at Spruce Pine, a quartz facility in a remote area of North Carolina.

The site, which is secretive and closely guarded, produces the vast majority of the quartz sand used to manufacture high-purity polysilicon crystals. The crystals are used to make modern semiconductors and solar panels, making it a singular choke point for supplies of the critical components.

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Hurricane Helene has led to huge damage across North Carolina and neighbouring states, with more than 150 people dead and millions without power.

The small town of Spruce Pine, where the mine is located, has been flooded and companies at the mining site are still attempting to account for all their workers.

Sibelco, the mining company that owns most of the operations at Spruce Pine, said it had “temporarily halted” operations. However, it is possible that recovering from the weather event could take months, potentially disrupting supplies of silicon and leading to a new microchip supply crunch.

www.telegraph.co.uk/business/2024/10/02/car-industry-choke-point-us-hurricane-microchip-mine/

Hurricane Helene suspends quartz production in Spruce Pine, North Carolina

www.washingtontimes.com/news/2024/oct/1/hurricane-helene-suspends-quartz-production-in-spr/

The bigger story is these crystals are used for ALL chips. This could bring the whole microchip industry to it’s knees

h/t Emeraldlight

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