**North Carolina**: The small town of Spruce Pine, responsible for up to 90% of the global supply of high-purity quartz, becomes crucial amid rising tensions in the U.S.-China trade war, highlighting its pivotal role in semiconductor manufacturing and international relations.
The town of Spruce Pine in North Carolina, with a population of just 2,194, has emerged as a critical player in the ongoing trade dispute between the United States and China, particularly in the high-stakes arena of semiconductor manufacturing. Known for its unique geological formations, Spruce Pine is the heart of the U.S. supply for high-purity quartz, an essential mineral used in the production of computer chips and other high-technology components.
High-purity quartz, commonly referred to as HPQ, boasts a remarkable purity level of 99.9999999%, making it the gold standard for industries reliant on ultra-refined polysilicon wafers, including both the semiconductor and solar sectors. The Spruce Pine Mining District is responsible for a staggering 80% to 90% of the world’s supply of HPQ, with two major companies actively engaged in its extraction and processing.
The significance of this mineral has been amplified in light of recent developments. The ongoing trade war between the U.S. and China has heightened the demand for strategic resources, as both nations are vying for self-sufficiency in high-tech materials. The trade conflict has already strained supply chains, particularly after Hurricane Helene struck the western part of North Carolina, temporarily disrupting operations for one of the primary HPQ producers, Sibelco. Although Sibelco has resumed operations, the impact of the hurricane has created a notable gap in supply.
As tensions escalated this week, China’s Ministry of Natural Resources announced that it had discovered new deposits of high-purity quartz in its Henan and Xinjiang provinces. These claims, made on April 10, coincide with the intensifying trade war and may be perceived as an attempt to downplay the strategic importance of Spruce Pine’s resources. However, details regarding the size and purity of the Chinese deposits have not been disclosed, creating uncertainty about their potential to compete with the North Carolina supplies.
The implications of these developments are substantial, as HPQ is deemed a “strategic resource” vital to modern technology. As the global demand for semiconductor components surges, driven by advances in artificial intelligence and other high-tech innovations, Spruce Pine’s high-purity quartz may serve as a significant bargaining chip in future negotiations between U.S. officials and their Chinese counterparts.
The ongoing dynamics of the trade war, combined with the essential role Spruce Pine plays in the high-tech supply chain, position the small town as an unexpectedly pivotal player in international relations and global commerce.
Source: Noah Wire Services
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