One-third (32%) of projected US$1 trillion semiconductor supply could be at risk within a decade unless industry adapts to climate change

[Daniel Nenni]

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• 
  
• - Climate change could disrupt semiconductor production as copper, used to create semiconductor circuits, faces disruption from extreme weather and drought
• - Semiconductors are integral to the modern digital economy, with the global semiconductor industry tipped to hit US$1 trillion by 2030
• - One-third (32%) of global semiconductor production will be reliant on at-risk copper supply by 2035, PwC analysis suggests
• - Companies are investing in water security and climate resilience to manage the potential disruption risk
• - Analysis shows that climate risks are accelerating rapidly and highlight the business need to understand hidden risks across supply chains

LONDON, 8 July 2025 – One-third (32%) of global semiconductor production will be reliant on copper supply at risk from climate disruption by 2035, rising to 58% by 2050 if emissions do not decline, according to a new report from PwC, published today. The report finds that climate disruption risk poses a growing threat to the US$650 billion semiconductor industry, which is projected to exceed $1 trillion by 2030.

The report, the latest instalment of PwC’s Protecting People & Prosperity series, shows that copper mines, which require a steady water supply to function, face increasing risk from severe drought due to climate change. The analysis underlines the need for both copper exporters and semiconductor buyers to adapt their supply chains and practices if they are to manage the risks caused by climate disruption.

Glenn Burm, Global Semiconductors Leader, PwC South Korea, said:

“Semiconductors are the hidden lifeblood of modern technology, embedded in everything from computers and phones to cars and washing machines. It’s hard to think of a company that doesn’t rely on semiconductors in some way. They underpin economic security, are vital to unlocking the potential of AI and integral to renewable energy. We can act now by understanding and managing risks to supply, including the physical risks of climate change. Around the world, companies are adapting by boosting water production, diversifying supply chains, and strengthening climate resilience. 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.”

Copper faces growing threat from climate disruption risk​

Today, copper from only one country or territory that supplies the semiconductor industry – Chile – faces severe drought risks. However, within a decade, copper mines in the majority of the 17 countries that supply the semiconductor industry face severe drought risks.

As a result, more and more of the copper supply that semiconductor production relies on is at risk. As early as 2035, at least 34% of every semiconductor-making territory’s copper supply is projected to be at risk of drought disruption.

The resilience imperative: mitigating the risks of climate disruption to copper miners and semiconductor makers​

Semiconductor makers and buyers face an urgent need to strengthen supply chain resilience. While businesses are taking action, and 68% of investors believe companies should increase action to de-risk their supply chain according to PwC’s 2024 Global Investor Survey, more needs to be done.
Across the value chain, businesses should approach climate disruption as a commercial risk that needs to be managed. The various actions stakeholders can, and in some cases are already taking, include:

• Copper miners increasing water supply by investing in desalination plants, improving water efficiency and recycling water. Some copper miners, especially in Chile, are already taking action to protect their operations from drought through desalination.
• Semiconductor makers increasingly recognising climate risks and taking steps, including material innovation, such as using alternative materials; efficiency improvements, i.e., producing more compact circuits; diversification of suppliers; and recycling and leveraging the circular economy.
• Business leaders should first identify climate risks throughout the value chain, managing these risks through tactics such as supplier diversification, moderating reliance on a given commodity, and collaborating with suppliers and other partners across the value chain to build climate resilience.

Lynne Baber, Global Deputy Sustainability Leader, 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.”

About the Report
The report is the latest instalment as part of PwC’s Protecting People and Prosperity (PPP) series, which quantifies climate risks to key commodities. The report examines the scale of risks to semiconductor production, by tracing the global semiconductor industry’s copper supply back to copper mines across the world and then analysing how exposed those mines are to accelerating drought in coming years. To track precisely how accelerating drought could disrupt the semiconductor industry’s copper supply, we first identified the territories that are the world’s leading semiconductor producers. Next, we used trade data to find out where the top five semiconductor-producing countries get their copper. We traced both domestic sources and imports. Finally, we located all major copper mines in each copper source country. We identified which copper mines are in a location projected to experience severe drought risk (defined as predicted to spend at least 20% of the time in severe drought; the true time in severe drought could be much higher).


About PwC
At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 370,000 people in 149 countries. Across audit and assurance, tax and legal, deals and consulting we help clients build, accelerate and sustain momentum. Find out more at www.pwc.com.

One-third (32%) of projected US$1 trillion semiconductor supply could be at risk within a decade unless industry adapts to climate change: PwC

One-third (32%) of global semiconductor production will be reliant on copper supply at risk from climate disruption by 2035, rising to 58% by 2050 if emissions do not decline, according to a new report from PwC, published today.

www.pwc.com

 

[blueone]

Global carbon emissions are not likely to materially decline by 2050, and semiconductor fabrication companies do not have sufficient control over copper mining operations investments in foreign countries to affect mining infrastructure investments. I also find it difficult to believe that semiconductor fabrication is a major user of copper as a percentage of total copper demand, as say compared to commercial construction and electric utility equipment.

I think the authors are virtue signaling to make PwC look politically correct.

 

[blueone]

How timely of Trump:

https://www.cnbc.com/2025/07/08/trump-tariffs-copper-trade.html

 

[KevinK]

How timely of Trump:

https://www.cnbc.com/2025/07/08/trump-tariffs-copper-trade.html

Yes, the seemingly non-strategic and random walk through whatever spikes Trump's brain on any particular day...

• “Today, we’re doing copper,” Trump said during a Cabinet meeting. “I believe the tariff on copper, we’re going to make it 50%.”
  
  
  

• Why Is Trump Pursuing a 19th Century Trade and Economic Agenda in the 21st Century?​

  What is needed is an economic strategy designed around the realities of the modern world.

https://www.americanprogress.org/article/why-is-trump-pursuing-a-19th-century-trade-and-economic-agenda-in-the-21st-century/

​

 

[tooLongInEDA]

Global carbon emissions are not likely to materially decline by 2050, and semiconductor fabrication companies do not have sufficient control over copper mining operations investments in foreign countries to affect mining infrastructure investments. I also find it difficult to believe that semiconductor fabrication is a major user of copper as a percentage of total copper demand, as say compared to commercial construction and electric utility equipment.

I think the authors are virtue signaling to make PwC look politically correct.

Indeed, as a proportionally very small user of copper operating in a high margin business, I doubt the semiconductor industry has anything to worry about. They'll always be able to pay more than almost any other group of users. And could probably survive off recycled copper alone.

 

[Daniel Nenni]

This report is comedy but nobody is laughing?

"The report is the latest instalment as part of PwC’s Protecting People and Prosperity (PPP) series" I really don't think the pee pee pee acronym is going to catch on.

Personally I am more worried about AI accelerating climate change. The massive infrastructure AI will require in the coming years will result in a massive carbon boot print. On premise or in the cloud, AI has an insatiable compute power appetite that has to be powered and cooled. Also the manufacturing of said infrastructure. It is great that the semiconductor industry will hit a trillion dollars but that comes with a big carbon footprint. Of course so do cows and I do like my steak.

 

[benb]

On the topic of sustainability: Fabs consume a lot of water in gross terms, a potential problem given how scarce water is everywhere. Fabs are starting to recycle most or all of the water they consume. The goal is to be water positive; produce more water than is consumed. Pretty incredible if you ask me.

 

[hist78]

Indeed, as a proportionally very small user of copper operating in a high margin business, I doubt the semiconductor industry has anything to worry about. They'll always be able to pay more than almost any other group of users. And could probably survive off recycled copper alone.

From the PW Consulting:

"Advanced chipmaking processes below 7nm require copper interconnects for their superior electrical conductivity and electromigration resistance compared to aluminum. Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics consumed approximately 18 metric tons of high-purity copper targets combined during Q3 2023 for 3nm chip production, reflecting the industry's insatiable appetite for miniaturized electronics."

Source: https://pmarketresearch.com/chemi/copper-target-market/

Even if we multiply the 18 metric tons by 10,000, it is still a small fraction of the 26.6 million metric tons of global refined copper production in 2023. So how can it possibly become an issue?


,

 

[blueone]

Personally I am more worried about AI accelerating climate change. The massive infrastructure AI will require in the coming years will result in a massive carbon boot print. On premise or in the cloud, AI has an insatiable compute power appetite that has to be powered and cooled. Also the manufacturing of said infrastructure. It is great that the semiconductor industry will hit a trillion dollars but that comes with a big carbon footprint. Of course so do cows and I do like my steak.

I'm not. AI datacenter energy consumption is funding/pushing nuclear generation technology faster than I've seen in my lifetime, and may eventually result in an overall carbon emissions reduction for all of generation. Especially if small modular reactors built in factories become practical. Google and Microsoft are even investing in fusion power, though I think commercial fusion generation is so far off that's probably virtue signaling with investments.

 

[Daniel Nenni]

I'm not. AI datacenter energy consumption is funding/pushing nuclear generation technology faster than I've seen in my lifetime, and may eventually result in an overall carbon emissions reduction for all of generation. Especially if small modular reactors built in factories become practical. Google and Microsoft are even investing in fusion power, though I think commercial fusion generation is so far off that's probably virtue signaling with investments.

Agreed. I have friends who are working for energy start-ups. Nuclear will be back, smaller, safer, cleaner, cheaper, as long as approval from some dumb-ass politicians don't get in the way. Does coal have a political lobby?

Billions of dollars are being invested in energy start-ups, tech billionaires are on it. I will be visiting a sailing friend in WA who works at TerraPower next week in fact. Bill Gates and Sam Altman are backers. There have been delays so they are still 5 or more years out.

I heard they are restarting 3 Mile Island and other nuclear sites as well. So nuclear is coming but not fast enough in my opinion. Wind turbines and solar just will not cut it, my opinion.