Copper Crunch Could Cripple Chip Supply by 2035: PwC
Global semiconductor production could face a severe copper shortage due to climate change, with nearly 32% of the sector at risk by 2035, up from just 8% today, according to consultancy firm PricewaterhouseCoopers (PwC), as reported by Reuters.
Copper is essential for the intricate wiring inside chips, and although research into alternative materials is ongoing, none are currently as affordable or effective as copper. The growing climate crisis is threatening the copper supply chain, posing a significant challenge to the semiconductor industry.
Chile, the world’s largest copper producer, is already experiencing water scarcity, which is curbing production. PwC warns that by 2035, the majority of the 17 countries supplying copper to the chip industry will face drought risks.
"By 2050, nearly half of all countries could see their copper supply under threat," PwC said. While Chile and Peru are investing in more efficient water use and desalination projects, such measures may not be feasible for many other nations.
The looming supply gap raises serious concerns about the resilience of future technology infrastructure and the global supply of semiconductors.
