Reuters: PwC investigation suggests climate change threatens copper supply, nearly one-third of global chip capacity may be affected by 2035
Reuters reported on July 8 that consulting firm PwC released a report warning that due to copper supply disruptions caused by climate change, about 32% of global semiconductor production capacity will face risks by 2035, four times the current level. The world's largest copper producer, Chile, has slowed production due to water shortages, and most of the 17 copper supply countries that the chip industry relies on will face severe drought threats in the next decade.
The report cited data from the U.S. Department of Commerce, pointing out that the chip shortage triggered by the pandemic had caused a 1 percentage point loss in U.S. GDP growth, and 2.4% in Germany, highlighting the devastating impact of supply chain disruptions on the economy. Copper, as the core material for billions of wires in chip circuits, has no alternative that can match it in cost and performance. If material innovation cannot adapt to climate change, and if relevant countries fail to establish secure water supply systems, the risk will continue to escalate. Affected countries include major copper mining countries such as China, Australia, Peru, Brazil, the United States, and the Democratic Republic of the Congo; no region of global chip manufacturing is immune. Currently, 25% of Chile's copper production faces the risk of interruption, which will surge to 75% within a decade, and reach 90%-100% by 2050. Long-term forecasts indicate that regardless of the progress of global emissions reduction, about 50% of copper supply in various countries will be at risk by 2050.
Although Chile and Peru have alleviated the water crisis by improving mining efficiency and building desalination plants, PwC emphasized that countries without ocean resources find it difficult to replicate such solutions. Project leader Glenn Burm stated, "Water shortages are evolving from regional challenges into systemic threats, requiring global cooperation to promote material innovation and build supply chain resilience."
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