Copper Shortage Threatens Global Chip Supply by 2035

• PwC warns that by 2035, climate-driven droughts could disrupt copper supply for 32% of global chip production, quadrupling today’s risk.

Climate Risks Loom Over Semiconductor Supply Chains

A new report from PricewaterhouseCoopers (PwC) reveals that climate change could severely disrupt copper supply chains essential to semiconductor manufacturing. By 2035, 32% of global chip production may face copper shortages, a fourfold increase from current levels. Chile, the world’s top copper producer, is already experiencing water scarcity that hampers mining output. PwC warns that most of the 17 nations supplying copper to the chip industry—including China, Peru, and the U.S.—will be at risk of drought within a decade.

Copper’s Irreplaceable Role in Chipmaking

Copper remains indispensable in chip fabrication, forming billions of microscopic wires that carry signals and power across circuits. Although researchers are exploring alternatives, no material currently matches copper’s cost-efficiency and electrical performance. The report emphasizes that without breakthroughs in material science or improvements in water infrastructure, the vulnerability will intensify. By 2050, half of every country’s copper supply could be compromised, regardless of global carbon reduction efforts.

Mitigation Efforts and Global Implications

Chile and Peru have begun investing in desalination plants and mining efficiency upgrades to secure water access, but such solutions may not be viable for landlocked nations. PwC estimates that 25% of Chile’s copper output is already at risk, climbing to 75% by 2035 and potentially reaching 100% by mid-century. The last chip shortage, triggered by pandemic disruptions, cost the U.S. economy 1% of GDP and Germany 2.4%—a stark reminder of the stakes involved. Semiconductor firms must now treat climate resilience as a strategic imperative.