A new report by PricewaterhouseCoopers (PwC) has warned that 32% of global semiconductor production could face copper supply disruptions due to climate change by 2035, a sharp rise from current levels. The findings highlight a growing vulnerability in the global chipmaking supply chain, particularly as copper is essential for producing the billions of micro-wires in every chip.
The study flags climate-related droughts as the primary threat, particularly in Chile, the world’s top copper producer, which is already experiencing water shortages that are slowing mining operations. By 2035, PwC estimates that most of the 17 countries critical to copper supply for semiconductors will be at risk of severe droughts.
The impact could be severe, PwC project lead Glenn Burm noted, referencing the 2020–2021 global chip shortage that halted automotive and electronics production and shaved 1% off U.S. GDP and 2.4% off Germany’s, according to U.S. Department of Commerce data.
Copper-producing countries such as China, Australia, Peru, Brazil, the U.S., DR Congo, Mexico, Zambia, and Mongolia are all expected to be affected, leaving no chip-producing region spared from climate risks.
While research into copper alternatives is ongoing, the report warns that no substitute currently matches copper’s performance and cost-efficiency, making the material indispensable in the near term. PwC emphasized that unless innovation adapts rapidly and more reliable water supply systems are developed, the risks will grow more acute over time.
By 2050, PwC forecasts that half of each country’s copper supply will be at risk, even under optimistic climate scenarios. For Chile, 25% of copper output is already considered vulnerable; this figure could climb to 75% by 2035 and reach as high as 100% by mid-century.
Some countries, notably Chile and Peru, have taken preemptive action by boosting mining efficiency and investing in desalination plants to secure water access. However, PwC notes that such measures may not be viable for landlocked countries or those without access to seawater, making global coordination and innovation critical.
PwC’s report urges business leaders and governments to prioritize copper supply chain resilience as they plan future semiconductor strategies, warning that without action, climate-driven resource constraints could become the next major shock to the global tech economy.
