Published July 8, 2025, by PwC and reported by Reuters, the study warns that 32% of global chip capacity could face copper supply disruptions by 2035, rising to 42–58% by 2050, as drought and water scarcity affect mining and refining operations worldwide.

Key risk regions include Chile—the world’s largest copper producer—where nearly 75% of output could be disrupted by 2035 and 90–100% by 2050, unless water management improves. Other major producers (Peru, Australia, DRC, Zambia) face similar challenges as global temperatures climb.

Copper is vital for semiconductor manufacturing—used extensively for wiring in chips—yet no cost-effective substitute exists. During the last global chip shortage, production halts caused economic losses amounting to 1% of U.S. GDP and 2.4% in Germany.

Unless the industry invests in water-efficient mining or alternative materials, the long-term viability of semiconductor supply chains could be at stake.

Key Highlights

• 32% chip production at risk of copper disruption by 2035; up to 58% by 2050

• High-risk regions: Chile, Peru, Australia, DRC, Zambia, and others

• Economic impact: Chip shortages previously cost 1% GDP (U.S.) and 2.4% (Germany)

• No easy substitute: Copper remains critical in chip manufacturing

Why This Matters

1. Climate meets semiconductor supply: Physical environmental changes are emerging as core risk factors for critical tech industries.

2. Economic fragility: Regional disruptions may ripple across global tech production, affecting everything from automotive to cloud infrastructure.

3. Pressure for innovation: Encourages R&D in alternative materials and water-efficient mining technologies.

4. Corporate responsibility: Chipmakers and suppliers must proactively address environmental sustainability to ensure long-term stability.

Source:
Reuters– Full Article