appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Karen Chiu

Hannah Wang

Sam Phillips

Climate change could disrupt a third of the world’s semiconductor supply by 2035, as severe drought threatens the mining of copper – a critical material used in chip production – according to a new report from PwC released on Tuesday.
The extraction of copper, essential for building the microscopic wires found on semiconductor circuits, requires substantial water resources. About 1,600 litres (423 gallons) of water were needed to obtain just 19kg of copper, the report said, citing data from the Commonwealth Scientific and Industrial Research Organisation in Australia.
Currently, only copper supply from leading producer Chile, which contributes 7 per cent of global semiconductor production, is at significant risk from severe drought.
However, PwC projected that this figure could rise to 32 per cent by 2035 and 58 per cent by 2050 in a worst-case scenario, as climate risks increasingly affected major producers, including mainland China, Taiwan, Japan, South Korea and the US.

According to the International Copper Association (ICA), nearly 28 million tonnes of copper were consumed annually. While semiconductors used only a fraction of this, modern chips played a vital role in the global economy, according to the Washington-based Centre for Strategic and International Studies (CSIS).
Semiconductors are integral to consumer electronics, including computers and smartphones. The chip industry was expected to reach a value of US$1 trillion by 2030, largely driven by advances in artificial intelligence, according to the report.
“Semiconductors are the hidden lifeblood of modern technology,” said Glenn Burm, global semiconductors leader at PwC South Korea. “It’s hard to think of a company that doesn’t rely on semiconductors in some way.”
Compounding the challenge, demand for copper is anticipated to surge in other sectors, such as electrical wiring and solar energy, due to increased use of computing power and clean technologies.
Global copper demand is forecast to grow more than 40 per cent by 2040, outpacing supply, according to a UN Trade and Development report from May.
In 2023, China – a top consumer of semiconductors – also emerged as the world’s biggest importer of copper ore and unrefined copper, accounting for 60 per cent of the total.

To mitigate climate challenges, some copper-producing nations had been enhancing production efficiency, recycling water, and investing in desalination plants to increase water supply, PwC said.
Chipmakers were also exploring alternatives to copper – such as silver or carbon-based nano-materials – and were designing more efficient, compact circuits while diversifying their supply sources, the report said.
Recycling plays a crucial role as well: about a third of global copper consumption in 2022 was sourced from recycled materials, according to the International Copper Study Group.
“Copper is one of the few materials that can be reused with no decline in performance, making it an excellent candidate for recycling,” the report said, citing the ICA.
Besides copper mining, drought also poses a significant risk to the water-intensive process of silicon wafer fabrication.
In 2021, an unusual dry spell placed immense pressure on Taiwan’s government to ensure the continuous operation of Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker.


Pacing problem: can AI fears overcome US-China race dynamics and force a slowdown?

China’s storage makers aim to climb value chain with advanced packaging bets

China’s AI self-reliance presents opportunities but valuations, geopolitics are risks: BofA

China’s Hygon moves beyond data centres with embedded processors for robotics, edge AI

Semiconductors

A third of global chip supply threatened by climate change and drought by 2035: PwC

Extreme climate and drought are threatening the chip industry, according to a new report from PwC. Photo: EPA-EFE

Copper smelting at El Teniente mine, the world’s largest underground copper mine in Machali, Chile. Photo: AFP

A chip foundry belonging to Taiwan Semiconductor Manufacturing Company in Taichung. Photo: Shutterstock

ASML launches science project in China to discover new talent in lithography

An exterior view of ASML headquarters in Veldhoven, the Netherlands,  in March 2024. Photo: EPA-EFE

An engineer works on a Twinscan DUV lithography system at ASML in Veldhoven, Netherlands, in June 2023. Photo: Reuters

How Huawei’s Ascend AI chips outperform Nvidia processors in running DeepSeek’s R1 model

Huawei’s Ascend-based AI data centre architecture now rivals Nvidia’s own SGLang fast-serving framework. Photo: Shutterstock

The logo of Huawei Technologies is seen at the VivaTech conference and trade show held in Paris on June 11, 2025. Photo: AFP

Huawei Technologies founder and CEO Ren Zhengfei. Photo: Xinhua

Tech war: Chinese institute begins photonic chip production despite US curbs

The campus of Shanghai JiaoTong University. One of its affiliated institutes has begun production of photonic chips. Photo: AFP

Chinese academy launches automated system to speed up chip design amid US software curbs

Chips seen on a circuit board of a computer. Photo: Reuters

An overview of the automated chip design system QiMeng. Photo: Handout

Sassine Ghazi, CEO of Synopsys. The US has restricted leading chip design automation software suppliers from selling to China. Photo: Reuters

Tech

Tech Trends

Policy

Business

Climate and energy

News

China Future Tech

The acceleration of climate change may prove calamitous for semiconductor production, which relies on copper, a new report says


The acceleration of climate change may prove calamitous for semiconductor production, which relies on copper, a new report says.


A third of global chip supply threatened by climate change and drought by 2035: PwC

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The acceleration of climate change may prove calamitous for semiconductor production, which relies on copper, a new report says

The acceleration of climate change may prove calamitous for semiconductor production, which relies on copper, a new report says