Chip tensions to fuel high-purity quartz market growth

Significance

The trade bans have not thus far affected production of commodities critical to the manufacturing process, such as high-purity quartz (HPQ). Development and mining of this mineral have remained largely outside US policies that aim to slow China’s progress in chip-making.

Impacts

• Illustrating the bright prospects for HPQ, Chinese quartz sand makers’ shares bucked the negative trend on domestic stock markets in 2022.
• Solar panel producers in Xinjiang are under US sanctions and US-based quartz miners claim their product is unavailable in Xinjiang.
• Illustrating the vulnerability to geopolitical strains, China banned quartz sand exports to Taiwan after US Speaker Pelosi visited Taipei.