PwC report highlights climate change risks to copper production

A report by consulting firm PricewaterhouseCoopers (PwC) warns that approximately 32% of global semiconductor production could face disruptions by 2035 due to climate change-induced copper supply shortages.

Chile, the world's largest producer of the red metal, is already experiencing water shortages that are slowing production. Within a decade, 17 nations supplying copper, which is critical to chip manufacturing, will face drought risks, PwC notes.

The industry last faced similar challenges during the COVID-19 pandemic, when demand surges coinciding with factory shutdowns paralyzed automotive manufacturing and disrupted other chip-dependent sectors, Reuters reports.

PwC's Glenn Burm, citing US Department of Commerce data, emphasizes the economic impact: the supply chain crisis cost the American economy 1% of GDP growth and Germany 2.4%.

The situation demands urgent attention and proactive measures. Chile and Peru are already implementing solutions by improving mining efficiency and constructing desalination plants. PwC considers such an approach exemplary for other nations to follow.