Market Insights Q3 2024 V2 - Flipbook - Page 2
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Disruptions Due to Hurricane Helene
Hurricane Helene Disrupts Quartz Production in North Carolina, Poses
Challenges to Semiconductor Supply Chain
Hurricane Helene has impacted Spruce Pine, North Carolina, a key source of ultra-pure
quartz essential for semiconductor manufacturing. Both Sibelco and The Quartz Corp, which
operate the town's quartz mines, have suspended operations indefinitely due to the storm.
This quartz is crucial for producing the crucibles used in the fabrication of silicon chips, solar
panels, and fiber-optic cables. Nearby semiconductor manufacturers, such as Renesas
Electronics in Durham, North Carolina, may feel indirect effects from the disruption.
Currently, efforts are focused on ensuring the safety of employees and addressing damage
to the region's infrastructure.
With Spruce Pine supplying up to 90% of the quartz used in global chip production, the
temporary halt raises concerns about potential supply chain disruptions, particularly as
demand for semiconductors continues to rise. Experts caution that extended downtime could
affect the cost and availability of chips, which are fundamental to a wide range of
technologies. While recovery efforts are progressing, local officials have emphasized the
critical importance of resuming operations, given the region's reliance on the mining industry
for its economic stability.
TE Connectivity Production Disruption Due to Hurricane Damage
TE Connectivity (TE) has suspended operations at its manufacturing site in Fairview, North
Carolina, following severe damage caused by a recent hurricane. The storm disrupted
essential services, including power, water, and telecommunications, making it necessary for
TE to halt production activities at the facility. The company is prioritizing the safety and wellbeing of its employees while actively working to assess damage and implement measures to
resume operations as soon as it is safe to do so. As a result of the temporary closure, TE
has informed its customers that they may experience delays in the delivery of products
assembled at this site. The company is committed to providing updated product lead times
and revised order schedules as it continues recovery efforts.
The incident has been classified as a Force Majeure event under TE’s agreements with its
customers and their affiliates, as it was both unforeseeable and beyond the company’s
control. TE has stated that these circumstances render its performance commercially
impractical and, as such, the company cannot accept responsibility for any additional costs
customers may incur due to delays, such as line-down charges. Despite these challenges,
TE remains committed to supporting its customers and ensuring the highest quality of service
as it works to restore full production capabilities. Customers seeking updates or information
regarding their orders are encouraged to contact their respective TE sales representatives for
further assistance.
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