Free Republic

In March, a Wharton professor who studies artificial intelligence and start-ups claimed on X, “The modern economy rests on a single road in Spruce Pine, North Carolina. The road runs to the two mines that are the sole supplier of the quartz required to make the crucibles needed to refine silicon wafers.” Ethan Mollick noted at the time, “There are no alternative sources known” if supply disruptions were seen in Spruce Pines.

A tiny town in North Carolina that’s just been devastated by hurricane Helene could end up severely disrupting the global supply chain for microchips and solar panels. Nestled in the Appalachian mountains, the community of Spruce Pine, population 2,194, is known for its hiking, local artists and as America’s sole source of high-purity quartz. Helene dumped more than 2 feet of rain on the town, destroying roads, shops and cutting power and water. But its reach will likely be felt far beyond the small community.

Why it matters: Ultra-high-purity quartz is an essential component to semiconductor chips, and the only places in the world that can meet this need are two mines in a small North Carolina town. The mines' owner, Sibelco, is investing $700 million to expand capacity, but is that enough to keep up with AI-fueled chip demand? Spruce Pine is a small town about two hours drive northwest of Charlotte, NC. You can get to the general area via a number of ways, depending on your point of origin, but for the last stretch of the trip, you need to travel down...