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Fears are growing of a serious disruption to the global semiconductor industry, after Hurricane Helene knocked out a facility that provides a critical ingredient for the manufacture of the silicon wafers that are turned into the chips inside all the world’s computers.
Sky News has been told that Sibelco, the world’s biggest provider of high-purity quartz, has sent “force majeure” notices to its customers, freeing it from future liabilities if they cannot fulfil orders – after dramatic floods shut down its facilities in North Carolina.
The majority of the world’s ultra-high purity quartz is mined in Spruce Pine, a remote town in North Carolina. This quartz is used to make the crucibles in which polysilicon is melted, before being formed into the pristine silicon wafers that semiconductor companies such as Intel and TSMC turn into computer chips.
The town and surrounding areas have suffered catastrophic flooding, with roads and rail lines cut off, following Hurricane Helene late last week.
While the scale of damage remains unclear, Sibelco, a private Belgian firm, said it had temporarily stopped production.
“We have confirmed the safety of most employees and are working diligently to contact those still unreachable due to ongoing power outages and communication challenges,” it said.
“As of 26 September, we have temporarily halted operations at the Spruce Pine facilities in response to these challenges.
“Please rest assured that Sibelco is actively collaborating with government agencies and third-party rescue and recovery operations to mitigate the impact of this event and to resume operations as soon as possible.
“Our top priority remains the health, safety, and wellbeing of our employees, as well as ensuring the security of the Spruce Pine facility.”
The last time there was a disruption at Spruce…
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