The world could be heading for another chip crisis. But this time, the problem isn’t demand. It’s water.
A new report from PricewaterhouseCoopers (PwC) says that 32% of global chip production may face copper supply disruptions by 2035. That’s four times more than today’s level.
The reason? Climate change.
Drought Could Break the Supply Chain
Copper is a must for chip production. It powers the billions of tiny wires inside every semiconductor. But making copper needs lots of water. And now, countries that mine copper are drying up.
Chile, the world’s biggest copper producer, is already facing serious water shortages. Peru is also at risk. And by 2035, PwC says that most of the 17 countries supplying copper to chipmakers will face drought threats.
Global Risk, Local Crisis
The warning is clear: no major copper region is safe.
Countries like China, Australia, Peru, Brazil, the U.S., Congo, Mexico, Zambia, and Mongolia will all feel the heat. And since these places feed the chip industry, their water problems could choke the tech world.
We’ve seen what a chip shortage can do. During the pandemic, factories shut down, cars sat unfinished, and global GDP took a hit. The U.S. lost 1% in growth, and Germany lost 2.4%, according to the report.
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Copper: No Easy Replacement
There are no cheap or strong alternatives to copper right now. Yes, researchers are trying to find other materials. But nothing comes close yet in performance or price.
That’s why PwC says the risk will only grow if we don’t adapt. Countries need stronger water plans. Innovations must go faster. If not, half the world’s copper could be at risk by 2050.
Chile Tries, Others May Struggle
Chile and Peru have started working on solutions. They’re building desalination plants and trying to use water more smartly in mining. But other countries may not be able to copy this, especially those without access to sea water.
PwC warns that 25% of Chile’s copper is already at risk today. In ten years, that number could rise to 75%. By 2050, it might reach 100%.
The Bigger Picture
This is not just a mining story. It’s a tech story, a climate story, and a global economy story.
If the world wants to keep building chips—and the gadgets they power—we must protect the copper that makes it all work.
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