One-third (32%) of global semiconductor production could be at risk within a decade unless industry adapts to climate change, according to a PricewaterhouseCoopers (PwC) report.

Copper’s superior ability to conduct electricity makes it a critical material in a wide range of industries, including telecommunications, energy and electric vehicle production.

It also plays a critical role in the semiconductor industry, which is tipped to hit $1tn by 2030, primarily as a conductor of electricity within chips. 

With the semiconductor industry ramping up production at unprecedented speeds, the need for copper is equally growing at an unprecedented rate.

The challenge is that supply is not keeping up with demand. The current copper mine project pipeline points to a 30% supply deficit by 2035. 

This, as the PwC report finds, is compounded by climate change. Chile, where most copper mines are located, faces severe drought risk in the coming years because of climate change. A steady supply of water is essential in copper mining.

PwC said that one-third (32%) of global semiconductor production will be reliant on copper supply at risk from climate disruption by 2035. This will rise to 58% by 2050 if emissions do not decline.

And it is not just Chile: copper mines in the majority of the 17 countries that supply the semiconductor industry also face severe drought risks in the coming years. 

As early as 2035, at least 34% of every semiconductor-making territory’s copper supply is projected to be at risk of drought disruption. 

To manage these risks, the report underlines the need for both copper exporters and semiconductor buyers to strengthen supply chain resilience.

According to PwC, across the value chain, businesses should approach climate disruption as a commercial risk that needs to be managed.

Glenn Burm, global semiconductors leader at PwC South Korea, said: “We can act now by understanding and managing risks to supply, including the physical risks of climate change. There’s great progress, but businesses can and should do more. As AI and other technologies drive digital transformation, the importance of securing critical commodities will only grow.”

Lynne Baber, global deputy sustainability leader at PwC, said: “By uncovering hidden vulnerabilities across supply chains and operations, businesses can proactively shape resilience strategies that protect value at risk – whether financial, operational or reputational. 

“Smarter climate adaptation unlocks agility, inspires innovation, and positions companies to lead in a more volatile world.”

Last year, global mining company Rio Tinto and Imperial College London launched the $150m Rio Tinto Centre for Future Materials in London. The first material being focused on is copper and finding new ways to extract it in the most sustainable way possible.  

E+T also recently took a deep dive into how clean energy ambitions are colliding with the global scramble for critical minerals, including copper.