Copper supply crisis triggers chip industry alert PwC: 32% of semiconductor production may be interrupted due to water shortage by 2035.

Consulting firm PricewaterhouseCoopers (PwC) pointed out in a report aimed at business leaders on Tuesday that by 2035, around 32% of global semiconductor production could face copper supply disruptions due to climate change, four times the current level. Chile, the world's largest copper producer, has already been addressing water scarcity issues, leading to a slowdown in its copper production. PwC stated that by 2035, most of the 17 major countries supplying copper to the chip industry will face drought risks. The last global chip shortage was caused by a surge in demand triggered by the pandemic, coupled with factory shutdowns. This shortage severely impacted the automotive industry and led to production delays in other industries reliant on chips. PwC project leader Glenn Borm quoted US Department of Commerce data in the report, stating, "The chip shortage reduced the domestic product of the US economy by a full percentage point and Germany by 2.4%." PwC also noted that copper miners from China, Australia, Peru, Brazil, the United States, the Democratic Republic of the Congo, Mexico, Zambia, and Mongolia will also be affected. No chip manufacturing region in the world is immune to this risk. Copper is used to manufacture billions of tiny wires in chip circuits. Although alternatives are being researched, no material currently matches copper in terms of price and performance. PwC stated that if material innovations cannot adapt to climate change and affected countries cannot establish more stable water supply systems, this risk will continue to increase over time. The report stated, "Regardless of how quickly global carbon emissions decrease, by 2050, around half of each country's copper supply will be at risk." Chile and Peru have taken measures to secure water supply by improving mining efficiency and building seawater desalination plants. PwC believes this is a practice worth emulating, but it may not be a feasible solution for countries that do not have access to large seawater resources. PwC estimates that currently 25% of Chile's copper production is at risk of supply interruptions, and this percentage will rise to 75% within ten years. By 2050, this proportion will reach 90% to 100%.