The PricewaterhouseCoopers (PwC) advisory said in a report that around 32% of global semiconductor production faces risks of copper shortage as a result of decreasing water supply in world’s biggest copper producer countries.
Water supply in countries such as Chile, Peru and China is struggling and by 2035, most of the 17 countries supplying copper for the chip industry will be at risk of drought, Reuters reported with a reference to the PwC data.
Chile, the world's largest copper producer, already grapples with water shortages that are slowing down production. Copper miners from China, Australia, Peru, Brazil, the US, Democratic Republic of Congo, Mexico, Zambia and Mongolia will also be affected, PwC said.
“It cost the US economy a full percentage point in GDP growth and Germany 2.4%,” PwC project lead Glenn Burm said in the report, citing the US Department of Commerce.
“Around half of every country's copper supply is at risk by 2050 - no matter how fast the world reduces carbon emissions.”
PwC estimates that 25% of Chile's copper production is at risk of disruptions today, rising to 75% within a decade and to between 90% and 100% by 2050.
Theodor Lisovoy, Managing Editor, Rough&Polished
