Understanding the Building Blocks of AI: From Quartz to Semiconductors

Welcome to the first piece in our AI Infrastructure series! 

Over the coming weeks, we’ll explore the hidden drivers behind the AI frenzy that’s shaping our world. From raw materials to the finished chips in data centers, there’s an entire ecosystem working behind the scenes to make AI possible.

This week, we’ll begin by focusing on raw materials—the unsung heroes of AI. It’s easy to forget that even the most advanced technologies start with materials that are mined, refined, and shaped. In this series, I’ll take you through these steps to show how they come together to build the tools that power our digital lives.

To illustrate just how integral silicon has become, the following timeline highlights key milestones in its evolution—from Jöns Jacob Berzelius’s initial isolation of silicon in 1824, to the first practical transistor in 1954, the groundbreaking introduction of integrated circuits, and eventually leading to AI-focused innovations like Nvidia’s CUDA architecture and Google’s TPU. It’s a reminder that today’s AI revolution rests upon nearly two centuries of material science and engineering breakthroughs.

I hope this series sparks some curiosity, and I’d love to hear your thoughts as we go. Let’s dive in!

1. The Current State of AI and Investments

Before we dive deeper into this journey, let’s take a quick look at the current state of artificial intelligence and the investments driving its growth. In 2022, global private investment in AI reached nearly $92 billion, with companies like OpenAI, Nvidia, and Google leading the way. For example, OpenAI secured a $10 billion investment from Microsoft to develop tools like ChatGPT, while Nvidia’s focus on GPUs for AI workloads propelled it to a market cap of over $1 trillion.

This overall resulted in driving the S&P 500 higher:

Investments are also transforming industries. In healthcare, AI is advancing diagnostic tools like DeepMind’s AlphaFold, while autonomous systems from Tesla and Waymo are shaping the future of transportation. Generative AI startups like Stability AI and Jasper AI have raised hundreds of millions, showing the immense potential of tools that create content, code, and art.

These investments aren’t just fueling AI innovation; they’re driving demand for the infrastructure and raw materials that make it all possible. That’s where our journey begins: understanding the materials powering this revolution.

2. Raw Materials: The Foundation of AI

Now let's dive into the first topic in this series: raw materials. Every technology we use—from smartphones to the AI systems shaping our world—relies on a foundation of materials. Just as early humans used stone and metal to build tools, today we use silicon, copper, and rare earth elements to power the digital age.

To illustrate just how integral silicon has become, the following timeline highlights key milestones in its evolution—from Jöns Jacob Berzelius’s initial isolation of silicon in 1824, to the first practical transistor in 1954, the groundbreaking introduction of integrated circuits, and eventually leading to AI-focused innovations like Nvidia’s CUDA architecture and Google’s TPU. It’s a reminder that today’s AI revolution rests upon nearly two centuries of material science and engineering breakthroughs.

With the rise of digitalization, these materials have become more important than ever. They’re at the heart of everything we build, from microchips to data centers. But as our technology advances, many of us lose sight of the complex supply chains and ecosystems that make it all possible. To truly understand AI and its infrastructure, we need to start by exploring the materials that make it all work.

In this chapter, we’ll focus on silicon—the backbone of semiconductors and the material powering AI hardware. From its origins in quartz to its transformation into ultra-pure silicon wafers, we’ll uncover the incredible journey of this essential resource.

2.1. Materials Metaphor

Artificial intelligence is like a chef making a birthday cake—it needs specific ingredients to work. The most essential "ingredient" in AI hardware is silicon, the flour of this metaphorical cake. Without it, the rest of the recipe falls apart. Other key materials, like gallium and germanium, add unique flavors, helping AI systems process data at incredible speeds.

Semiconductors, made from these materials, are the building blocks of AI. They control electricity, enabling devices to think, learn, and perform tasks like recognizing images, translating languages, or driving cars. For example, silicon-based semiconductors power CPUs, GPUs, and specialized AI processors like Nvidia’s GPUs or Google’s Tensor Processing Units (TPUs).

But these materials don’t work straight out of the ground. Silicon, for instance, starts as quartz sand and undergoes an extraordinary journey of purification and processing before it becomes a wafer for semiconductors. Gallium arsenide (GaAs) and germanium play critical roles in high-speed applications, like autonomous vehicles or advanced communication networks.

In the next sections, we’ll explore how silicon, the most widely used semiconductor material, is mined, refined, and transformed into the microchips that power AI systems. Silicon comes from quartzite sand. Silicon is abundant, affordable, and has unique properties that make it perfect for controlling electrical signals with incredible precision. This ability allows it to form the foundation of CPUs, GPUs, and specialized AI chips like Tensor Processing Units (TPUs). These chips are the "brains" of AI, enabling systems to process large datasets, train neural networks, and make real-time predictions.

Silicon’s versatility has made it the cornerstone of modern technology. For example, Nvidia’s GPUs—essential for AI training—are built on silicon wafers. Google’s TPUs, designed to handle machine learning workloads, also depend on silicon as their base material.

2.2. Gallium Arsenide: The Sprinter of AI Materials 

While silicon is the workhorse of AI hardware, gallium arsenide (GaAs) plays a critical role in high-speed applications. GaAs, a compound of gallium (a byproduct of aluminum and zinc refining) and arsenic, excels in scenarios where speed and efficiency are crucial. Unlike silicon, GaAs operates efficiently at higher frequencies, making it ideal for AI applications like radar imaging, autonomous vehicles, and advanced communication systems.

Additionally, GaAs is highly efficient at converting light into electricity, which makes it invaluable for AI systems using optical data transmission or advanced sensors. This material powers critical technologies where rapid decision-making and high data throughput are essential. We are not going to cover GaAs any further in this post…

3. From Sand to Semiconductors: The Journey of Silicon

Silicon’s journey begins in nature, where quartz—a mineral found in sand—holds the key to modern technology. Quartz is rich in silicon dioxide (SiO₂), and it’s from this humble material that the foundation of AI hardware is built. The purest quartz in the world comes from Spruce Pine, North Carolina, a small town that plays an outsized role in global semiconductor manufacturing.

The process of turning quartz into the silicon wafers that power AI is nothing short of extraordinary. Here’s how the process is divided into four parts:

1. Mining and Purification

2. Silicon Metal Production

3. Polysilicon Production

4. Wafer Fabrication

3.1. The Importance of Silicon for AI 

The demand for high-purity silicon has skyrocketed due to the growth of AI. Every chip, from Nvidia GPUs to Google TPUs, relies on silicon wafers to function. The global supply chain is complex and fragile, with mining and purification concentrated in specific regions (like Spruce Pine) and downstream processing dominated by countries like China.

In the next sections, we’ll explore the risks and interdependencies of this supply chain, along with the innovations shaping its future.

4. Mining & Purification: Quartz’s Role in Semiconductors 

The United States holds a critical position in the global quartz industry, largely due to the exceptional deposits in Spruce Pine, North Carolina. Known for producing the purest quartz on Earth, this small region has become indispensable to the semiconductor, solar, and high-tech industries. Quartz sourced from Spruce Pine is unique due to its unparalleled purity and low levels of impurities like iron and aluminum, which could otherwise degrade the performance of silicon-based products.

This remarkable quality has made Spruce Pine the backbone of the global semiconductor industry. The ultra-pure quartz mined here is essential for producing the silicon used in everything from GPUs and TPUs to solar panels. Its purity ensures that the final semiconductors can meet the stringent performance demands of advanced technologies. This concentrated reliance on Spruce Pine gives the U.S. significant leverage in the global quartz market, as much of the world depends on this supply to fuel technological advancement.

4.1. Key Companies in Quartz Mining 

Two companies dominate quartz mining and refining in Spruce Pine: The Quartz Corporation and Sibelco. These industry leaders specialize in extracting and processing high-purity quartz to meet the rigorous standards of semiconductor and solar manufacturing. Their expertise ensures that this critical material supports industries worldwide.

• The Quartz Corporation: One of the largest suppliers of ultra-pure quartz globally, supporting the semiconductor supply chain with high-purity quartz for chips, solar panels, and advanced optical products.

• Sibelco: A multinational materials company producing high-purity quartz sands essential for electronics and renewable energy sectors. With operations in Spruce Pine, they are a cornerstone of the global quartz industry.

4.2. Supply Chain Dependencies and Risks 

While the U.S. dominates quartz mining and purification, much of the downstream processing takes place in China, which leads in silicon metal and polysilicon production. This interdependence creates a delicate balance: the U.S. controls the raw material, but China dominates the transformation processes critical for semiconductor manufacturing.

This reliance on Spruce Pine also introduces vulnerabilities. Hurricane Helene, for instance, disrupted quartz mining operations, temporarily halting production of high-purity quartz. The ripple effects were felt worldwide, delaying semiconductor manufacturing and highlighting the fragility of the supply chain. As demand for semiconductors grows, such disruptions emphasize the need for better risk management strategies, including the creation of strategic reserves and exploration of alternative quartz sources.

4.3. Emerging Alternatives in Quartz Supply 

Recognizing the risks of relying on a single region, several companies are working to develop alternative sources of high-purity quartz:

• Jiangsu Pacific Quartz (China): A major player in high-purity quartz products for semiconductors and solar panels. Although China dominates processing, its quartz industry heavily relies on imports from Spruce Pine.

• I-Minerals (Canada): Actively developing quartz projects to diversify global supply and reduce dependency on U.S. reserves.

• Russian Quartz (Russia): Supplies quartz for high-tech applications but faces challenges in matching the exceptional purity of Spruce Pine’s deposits.

These companies aim to bolster the global quartz market, but no alternative source has yet matched the quality and reliability of Spruce Pine’s quartz.

4.4. The Future of High-Purity Quartz 

As the demand for semiconductors and renewable energy technologies continues to rise, the importance of high-purity quartz will only increase. Companies like The Quartz Corporation and Sibelco remain at the heart of this industry, leveraging their control over Spruce Pine’s resources. Meanwhile, emerging players in Canada, China, and Russia are working to diversify the supply chain and enhance global resilience.

The interplay between mining, purification, and downstream processing will define the future of the semiconductor and solar industries. In the next section, we’ll explore how purified quartz is transformed into silicon metal, the next critical step in creating the chips that power AI and advanced technologies.

Key Companies Mentioned in This Section

1. The Quartz Corporation (U.S.) – Leader in high-purity quartz extraction and refinement.

2. Sibelco (U.S.) – Major producer of high-purity quartz for semiconductors and solar industries.

3. Jiangsu Pacific Quartz (China) – Key producer of quartz products for global markets.

4. I-Minerals (Canada) – Developing quartz projects to reduce global dependency on Spruce Pine.

5. Russian Quartz (Russia) – Supplier of quartz for advanced technologies but with lower purity.

5. Silicon Metal Production 

The journey from raw quartz to advanced AI systems relies heavily on an intermediate step: silicon metal production. This stage transforms high-purity quartz into silicon metal, a fundamental ingredient in the semiconductor and solar industries. Without silicon metal, the entire chain of technological progress—from CPUs and GPUs to solar panels—would collapse.

Silicon metal production begins with a process that’s both ancient and cutting-edge: smelting. High-purity quartz is combined with a carbon source (such as coke, coal, or wood chips) in submerged arc furnaces, where temperatures soar to nearly 1,900°C (3,450°F). At this extreme heat, the silicon dioxide (SiO₂) in the quartz reacts with carbon to form silicon metal and carbon monoxide gas. The result is a molten product that is cast into ingots or granules for further refinement:

SiO₂ + 2C → Si + 2CO

This process may sound straightforward, but achieving semiconductor-grade silicon metal requires extraordinary precision. The raw materials must be of the highest quality, and the smelting environment must be precisely controlled to eliminate impurities.

For a little bit more information, please check out the following video:

5.1. Key Players and Global Dynamics 

The silicon metal industry is highly concentrated, dominated by a handful of countries and companies with access to the necessary resources and infrastructure. The energy-intensive nature of the process adds another layer of complexity, as stable and cost-effective power is critical.

• China: As the largest producer of silicon metal, China accounts for over 70% of the global supply. Companies like GCL-Poly and Tongwei Co., Ltd. benefit from abundant resources and strong government support, allowing them to lead in both scale and cost-efficiency.

• United States: While the U.S. excels in mining high-purity quartz, it plays a smaller role in silicon metal production. Companies like Globe Specialty Metals depend on Spruce Pine quartz for their operations, but their output is overshadowed by China’s dominance.

• Norway: Known for its sustainable production practices, Norway uses hydroelectric power to reduce the environmental impact of silicon metal production. Companies like Elkem are pioneers in using renewable energy for smelting, making Norway a significant player despite its smaller market share.

• Brazil: With ample quartz reserves and affordable energy, Brazil is another key player. Companies like Rima Industrial are expanding their production capabilities to meet growing global demand.

5.2 Challenges and Risks 

Producing silicon metal comes with serious challenges that affect industries around the world. The process of smelting is incredibly energy-hungry, making it both expensive and dependent on reliable power sources. On top of that, it has a big environmental impact, releasing harmful gases like carbon monoxide, which raises concerns about its role in climate change. Efforts to make production cleaner and greener are becoming more urgent.

Then there’s the issue of purity. Silicon for semiconductors needs to be almost perfect, with tiny impurities measured in parts per billion. Getting to that level of quality takes extra steps like chemical treatments, which add cost and complexity.

Finally, the supply chain is fragile. Power shortages in key production areas have already caused delays, creating problems for industries that rely on silicon metal. This includes vital technologies like AI and renewable energy, making these disruptions a global concern.

5.3. Interdependencies in the Ecosystem 

Interestingly, the U.S. and China demonstrate a unique interdependence in this part of the supply chain. The U.S. supplies the ultra-pure quartz from Spruce Pine, while China dominates silicon metal production and downstream polysilicon processing. This delicate balance underscores the need for diversification and risk mitigation, especially in light of geopolitical tensions and environmental pressures.

6. Polysilicon Production 

Polysilicon production is a crucial step in the transformation of raw materials into the building blocks of modern technology. Following the mining of quartz and the production of silicon metal, this stage refines silicon metal into polysilicon, a material with an extraordinary level of purity. Polysilicon is indispensable in the creation of silicon wafers, which are the foundation of semiconductors and solar cells. Without it, the AI revolution and countless other technological advancements would not be possible.

Polysilicon achieves a purity level of 99.9999%—a necessity for semiconductor manufacturing, where even microscopic impurities can disrupt the precise electrical properties of chips. This ultra-pure form of silicon is used to create the wafers on which intricate circuits are etched, powering everything from AI processors to renewable energy technologies.

6.1. The Polysilicon Production Process 

Polysilicon production is like baking a perfect cake but on a microscopic scale, where every ingredient and step must be flawless. The process starts with silicon metal, which is transformed into a special chemical called trichlorosilane by mixing it with hydrogen chloride gas at high heat. Think of this step as turning raw ingredients into a smooth batter. Along the way, useful byproducts like hydrogen gas are created, which can be reused to keep the process efficient.

Next, the trichlorosilane undergoes a "cleaning" phase through distillation, similar to straining impurities out of a liquid. This step removes unwanted elements like boron or phosphorus, which could ruin the final product's quality.

Once purified, the trichlorosilane is heated to extremely high temperatures (like baking at an oven's max setting) in a reactor. The heat causes the gas to break apart and deposit pure silicon onto rods, layer by layer, forming thick cylinders of polysilicon. Imagine frosting a cake, but here, each layer must be perfectly even and pure. The leftover hydrogen gas is collected and reused, making the process a bit more sustainable.

Finally, these silicon rods are removed, cleaned, and broken into smaller pieces, ready to be shaped into thin wafers—the "foundations" for creating semiconductors.

6.2. Challenges 

Producing polysilicon is incredibly energy-intensive, especially during the heating stage, which uses a lot of electricity. The demand for near-perfect purity adds to the complexity, as even tiny imperfections can ruin the final product. Moreover, much of the world’s polysilicon is made in China, creating risks for countries that rely on imports. Political tensions and trade rules can further complicate this delicate supply chain.

6.3. Why Polysilicon is Crucial for AI 

Polysilicon may not seem directly linked to AI, but its role is foundational. Without polysilicon, there would be no silicon wafers, and without wafers, there would be no semiconductors to power AI chips. From GPUs and TPUs to the processors that run machine learning models, every piece of hardware relies on the purity and precision of polysilicon.

As AI applications grow in scale and complexity, so does the demand for high-quality polysilicon. Its contribution to the semiconductor supply chain underpins the technological advancements driving industries worldwide.

7. Wafer Fabrication 

Wafer fabrication is the process of turning polysilicon into thin, round slices of silicon called wafers. These wafers are the foundation for semiconductors, which are the chips powering AI systems, smartphones, and many other modern technologies.

After polysilicon is refined to an extremely pure state, it is melted down and reshaped into a solid, single crystal structure. This is done using a method called the Czochralski process, where a small crystal is dipped into molten silicon and slowly pulled upwards while being rotated. The result is a large, cylindrical piece of pure silicon, known as an ingot.

Once the ingot is formed, it is carefully shaped and then sliced into very thin pieces using a wire saw. These slices are the wafers that will later have tiny circuits built onto them. However, at this stage, the wafers still have rough surfaces and need to be polished. The polishing process makes the wafers extremely smooth and shiny, which is necessary because even a tiny imperfection could ruin the delicate circuits that will be added later. After polishing, the wafers are thoroughly cleaned to remove any remaining dust or residue.

Making wafers requires very precise techniques because the quality of the wafer directly affects how well the chips built on it will work. The wafers must be flat, smooth, and free of any impurities to ensure that the semiconductors they become can handle the complex tasks required for AI applications. For example, AI chips like GPUs and TPUs are made by layering and etching intricate patterns onto these wafers, and any defect in the wafer can make the chip unusable.

7.1. Key Wafer Fabrication Companies 

There are only a few companies in the world that specialize in making high-quality wafers. Some of the leaders in this industry include:

• SUMCO (Japan): Known for producing a wide range of wafers with high precision.

• Shin-Etsu Handotai (Japan): One of the largest suppliers of wafers for both semiconductors and solar cells.

• GlobalWafers (Taiwan): A key player focused on diverse wafer sizes and innovative technologies.

• Siltronic (Germany): A significant supplier for advanced semiconductor applications.

• SK Siltron (South Korea): Specializing in wafers for next-generation AI and 5G technologies.

The process of making wafers is expensive and requires a lot of energy, but it is a critical step in creating the chips that power AI. Without high-quality wafers, it would not be possible to build the advanced semiconductors that allow AI systems to learn, process data, and make predictions. As AI becomes more important, the demand for wafers will continue to grow, pushing companies to innovate and find ways to make even better wafers. With the wafers ready, the next stage is to create the actual chips by adding circuits to them, which is where the real magic of semiconductor manufacturing happens.

8. Challenges in the Silicon Supply Chain 

The silicon supply chain is a marvel of modern logistics, spanning continents and industries. It begins with high-purity quartz from places like Spruce Pine, North Carolina, and extends to silicon metal production, polysilicon refinement, and wafer fabrication, much of which happens in Asia. This interconnected system enables the production of the chips that power AI systems, smartphones, and renewable energy technologies. However, it’s also fraught with challenges.

8.1. Geographic Concentration and Dependencies 

A significant vulnerability in the silicon supply chain is its reliance on specific regions for key processes:

• Quartz Mining: Spruce Pine is the primary global source of high-purity quartz. This dependence creates risk—any disruption in mining operations can have ripple effects worldwide.

• Silicon Processing: China dominates silicon metal and polysilicon production, accounting for over 70% of global output. This has created a delicate balance of interdependence between nations like the U.S. and China. For instance, during the global semiconductor shortage of 2020–2021, supply chain bottlenecks caused delays in everything from cars to consumer electronics. This crisis underscored the fragility of the system and the need for greater resilience.

8.2. Natural Disasters and Environmental Risks 

The supply chain is also susceptible to natural disasters. Hurricane Helene, for example, disrupted operations in Spruce Pine, temporarily halting the production of high-purity quartz. These disruptions highlight the importance of creating strategic reserves and exploring alternative sources of quartz.

Environmental concerns are another challenge. The energy-intensive processes of silicon metal and polysilicon production contribute to significant carbon emissions. Norway has taken steps to address this by using hydroelectric power for silicon metal production, but such efforts remain limited globally.

8.3. Geopolitical Tensions 

The U.S.-China trade tensions have added pressure to an already complex supply chain. Export restrictions on advanced chips and technologies have led to increased competition and prompted some nations to reconsider their reliance on foreign suppliers.

8.4. Increasing Demand from AI and Renewable Energy 

The explosive growth of AI has intensified the demand for high-quality silicon. Chips like Nvidia’s GPUs and Google’s TPUs require advanced silicon wafers. Meanwhile, the renewable energy sector is competing for polysilicon to manufacture solar panels. This dual demand is straining supply chains and driving up costs.

8.5. Opportunities for Innovation and Resilience 

Despite these challenges, there are opportunities to strengthen the silicon supply chain:

• Diversification: Countries like Canada and Australia are exploring their quartz reserves to reduce reliance on Spruce Pine.

• Sustainability: Investments in greener silicon production, like Norway’s hydroelectric-powered smelting, can reduce the environmental impact.

• Technological Advancements: Innovations in chip design and materials science could reduce the dependence on traditional silicon wafers.

As AI continues to grow, addressing these challenges will be critical to ensuring the supply chain’s resilience and sustainability. In the next section, we’ll explore how these materials are transformed into the chips that power AI systems.

9. Conclusion / Next Steps 

The path from quartz sand to cutting-edge AI hardware is long, intricate, and involves players across the globe. As we’ve seen, silicon is the most critical building block, but it relies on a carefully orchestrated supply chain—one that is sensitive to geographic constraints, natural disasters, geopolitical pressures, and accelerating demand from both AI and renewable energy sectors.

I hope this series sparks some curiosity, and I’d love to hear your thoughts as we go. Let’s continue this journey by examining the next steps in semiconductor manufacturing and how these raw materials become the sophisticated AI chips that power our digital world.

Stay tuned for upcoming chapters where we’ll dive deeper into semiconductor design, chip fabrication techniques, and the innovations that will shape the future of AI hardware.

Stay curious, stay informed, and keep waddling forward! 🐧✨