Climate change is no longer a distant worry – it’s starting to affect industries we depend on every day. A recent PwC report warns that by 2035, severe droughts could hamper copper mining, a vital process for making semiconductors. Copper is crucial for the tiny wires inside chips, yet extracting just 19kg requires about 1,600 litres of water. This means any water shortage could have a big impact.
Chile, which currently contributes 7% of global semiconductor production, is already feeling the strain from drought. PwC suggests that by 2035 as many as 32% of production sites could be at risk, with the figure rising to 58% by 2050 if weather conditions worsen. This challenge isn’t limited to Chile – major producers like China, Taiwan, Japan, South Korea, and the United States might also face disruptions. Even though the semiconductor industry uses only a fraction of the nearly 28 million tonnes of copper consumed annually worldwide, its importance is undeniable. Chips drive the tech behind our smartphones and computers, and with the market set to hit a $1 trillion valuation by 2030 thanks to AI advances, it’s clear that building a resilient supply chain is more important than ever.
