In-Depth Analysis of the Significance of Baimianshi Quartz Mine's Semiconductor-Grade Purity for Domestic Chips

Based on the data and analysis I have collected, below is an in-depth analysis report on

:

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Baimianshi Quartz Mine refers to a type of

high-purity quartz deposit, represented by the Spruce Pine deposit in the United States. This deposit has the following notable characteristics [0]:

• Large ore body scale
  : Quartz content is approximately 30%, with coarse crystal grain size
• Extremely low impurity content
  : Minimal fluid impurities in individual quartz crystals, with impurity element content at the ppb level
• Stable ore quality
  : Capable of continuously supplying high-purity quartz sand that meets high-end application requirements

Baimianshi Quartz Mine is currently the only ore source in the world capable of large-scale supply of semiconductor-grade high-purity quartz sand, meeting more than

of the global demand for high-purity quartz sand [0].

Semiconductor manufacturing has extremely stringent purity requirements for quartz materials, according to industry standards [0]:

Purity Grade	SiO₂ Content	Application Field
3N	≥99.9%	Ordinary glass, casting
4N	≥99.99%	Outer layer of photovoltaic crucibles
4N8	≥99.998%	Inner layer of photovoltaic crucibles
5N	≥99.999%	Semiconductor crucibles
6N+	≥99.9999%	High-end semiconductors

For semiconductor quartz crucibles, the

, among which the total content of the three impurity elements potassium, sodium, and lithium must ≤2×10⁻⁶ [0]. Any trace impurity may cause failure in the electrical performance of chips.

High-purity quartz sand plays an

in the semiconductor industry chain:

[0][1]:

Application Segment	Purity Requirement	Localization Rate	Value Proportion
Monocrystalline silicon pulling (quartz crucible)	4N8+	35%	25%
Diffusion process (quartz tube)	5N	25%	20%
Etching process (quartz components)	5N+	20%	15%
Lithography process (quartz photomask)	6N	15%	25%
Cleaning process (quartz containers)	4N-5N	40%	15%

: The semiconductor industry accounts for of high-purity quartz sand consumption, making it the largest application field [0].

China’s high-purity quartz sand supply chain is characterized by

[0][1]:

:

• Overseas Procurement Ratio
  : Over 90% (2022)
• Main Sources
  : India, Brazil, Africa, the United States, and other regions
• Leading Enterprise
  : U.S.-based Unimin holds over 70% of the global market share

The U.S. Spruce Pine deposit is controlled by

and , among which Unimin’s IOTA series products are regarded as the industry standard [0]. This resource monopoly pattern exposes domestic chip manufacturing to significant supply chain security risks.

There are significant price differences in high-purity quartz sand [0]:

Product Type	Price (RMB 10,000/ton)
Imported inner layer sand	~60
Imported outer layer sand	~25
Domestic inner layer sand	~42
Domestic outer layer sand	~12

Inner layer sand is the core material of quartz crucibles, directly contacting molten silicon, and its purity directly determines the quality of monocrystalline silicon ingots.

.

With the expansion of domestic wafer fabs, demand for high-purity quartz sand continues to grow [0]:

Demand Forecast for High-Purity Quartz Sand for Crucibles (2022-2024):
• 2022: 66,000 tons
• 2023: 95,000 tons  
• 2024: 127,000 tons

Among this, the

, and there is currently a supply-demand gap for imported high-quality inner layer sand.

Advanced manufacturing processes have even higher requirements for quartz materials:

• 7nm and below processes
  : Require purity of 6N or higher, which domestic manufacturers have not yet achieved a breakthrough in
• EUV lithography
  : Has extreme purity requirements for quartz photomasks
• High-end etching equipment
  : Quartz components require extremely low bubble content and metal impurities

[0][1]:

Enterprise	Technological Breakthrough	Production Capacity/Plan
Jiangsu Quartz Co., Ltd.	Passed certifications from Tokyo Electron (TEL) and LAM Research	60,000-ton annual production capacity project to come online in 2024
Kaisheng Technology	Produced synthetic high-purity quartz sand of 6N-7N purity	5,000-ton synthetic sand project
Fihow	First domestic enterprise to pass certifications from the world’s top three semiconductor original equipment manufacturers	Leading in semiconductor quartz materials
Beijing Kaide Quartz Co., Ltd.	Quartz instruments, pipes, boats, and other products	Semiconductor-grade product line

• Jiangsu Quartz Co., Ltd.
  : Has obtained mining rights for high-quality vein quartz mines in India, forming resource barriers
• Kaisheng Technology
  : Acquired Taihu Quartz, with an annual production capacity of 5,000 tons of high-purity quartz sand
• Henan Region
  : Achieved a breakthrough in ultra-high-purity quartz sand purification technology, with silica purity reaching 99.998%

Current (2023) → 2024 Target → 2025 Target → 2026 Target → 2027 Target
    20%    →   35%   →   50%   →   65%   →   80%

:

1. Upgrading of mineral purification methods
   : Improve the utilization rate of overseas ore sources such as India
2. Mass production of synthetic quartz sand
   : Kaisheng Technology’s sol-gel method breaks through resource limitations
3. Electronic-grade certification
   : Accelerate the process of obtaining certifications from major global equipment manufacturers

1. Resource Guarantee
   : Accelerate the layout of high-quality overseas quartz ore sources to reduce dependence on a single source
2. Technological Research
   : Focus on breaking through technologies for inner layer sand and semiconductor-grade quartz products
3. Certification Promotion
   : Accelerate the certification process with mainstream domestic and foreign equipment manufacturers
4. Synthetic Route
   : Develop chemical synthesis methods to break free from the limitations of natural ore sources

• Raw Ore Resource Risk
  : High-quality quartz ore sources are scarce globally, with limited supply growth
• Technological Gap
  : Domestic sand still lags behind imported sand in terms of bubble performance, stability, and other aspects
• International Policy Risk
  : Geopolitics may affect the supply stability of overseas ore sources

With continuous breakthroughs by domestic enterprises in the following aspects, the domestic substitution process of high-purity quartz sand is expected to accelerate [0][1]:

• 2025
  : The localization rate of inner layer sand is expected to reach 50%
• 2027
  : The localization rate of quartz materials for semiconductors is expected to reach 80%
• Long-term
  : Form a supply pattern driven by both “purification + synthesis”

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[0] China Galaxy Securities Research Institute - Industry In-Depth Report: “High-Purity Quartz Sand Maintains High Prosperity, Domestic Substitution Process Accelerates” (December 2023)

[1] Huafu Securities Research Institute - In-Depth Report on Semiconductor Equipment Components Industry: “Leading the Domestic Substitution Wave, Domestic Enterprises Flock In” (September 2023)

[2] China Mining Magazine - “Research Status and Prospect of High-Purity Quartz Processing and Purification Technology”

[3] Sinolink Securities - Company In-Depth Report: “Leader in Quartz Crucibles, Leading Technology + Supply Guarantee Drive Growth”

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: The semiconductor-grade purity of Baimianshi Quartz Mine is of for domestic chips. As an indispensable basic material for chip manufacturing, the supply security of high-purity quartz sand is directly related to the stability of the entire semiconductor industry chain. The current status of a localization rate of less than 20% highlights the “supply chain bottleneck” risk, but with continuous efforts by domestic enterprises in resource layout, technological breakthroughs, and capacity expansion, the prospect of domestic substitution is promising. It is recommended to continue to pay attention to the technological progress and capacity release pace of leading related enterprises such as Jiangsu Quartz Co., Ltd., Kaisheng Technology, and Fihow.