Potential Semiconductor Supply Issues

Spruce Pine's quartz is fundamental to approximately 70% to 90% of global high-quality crucibles, which are vital for the semiconductor manufacturing process. Although semiconductor companies currently have around three months of reserves, the disruption in Spruce Pine raises concerns about future supply. If the damage to the mines proves to be severe, the semiconductor industry could face significant limitations in production capacity due to contamination risks associated with using lesser quality silicon. The long-term implications of this supply chain interruption could be substantial, yet a clearer picture will not emerge for several weeks.