Climate change is projected to significantly disrupt global semiconductor supply chains, particularly with respect to copper supplies essential for production. A report from PwC indicates that 32% of global semiconductor production will depend on copper sources at risk of water shortages over the next decade. Key markets like Chile face severe drought risks, endangering the mining processes that supply copper. Other countries, including China, Brazil, Mexico, and Australia, will encounter similar challenges, making the semiconductor industry increasingly vulnerable to climate impacts.
"More and more of the copper supply that semiconductor production relies on is at risk," the consultancy said.
"As early as 2035, at least 34% of every semiconductor-making territory's copper supply is projected to be at risk of drought disruption."
"Glenn Burm, global semiconductors leader at PwC South Korea, said semiconductors are the 'hidden lifeblood of modern technology' and warned disruption to supply chains could prove disastrous for the global tech industry."
"It's hard to think of a company that doesn't rely on semiconductors in some way," Burm said.
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