From an economic perspective, the intersection of climate change and the semiconductor industry presents a complex challenge with far-reaching consequences. The PwC report highlights the vulnerability of the copper supply chain, a critical component for semiconductor manufacturing, to climate-related disruptions.
A key finding from recent research indicates that by 2035, as much as 32% of global semiconductor production could be reliant on copper supplies at risk due to climate change, potentially rising to 58% by 2050. This reliance underscores the economic vulnerability of the global chip industry, which is projected to reach $1 trillion by 2030. The economic implications are significant, with potential price increases, supply shortages, and disruptions to various sectors dependent on semiconductors, from automotive to consumer electronics.
The inauguration of a desalination plant in Chile, as mentioned in the report, represents a proactive measure to mitigate water scarcity, a direct consequence of climate change impacting copper mining. This investment, while positive, highlights the need for further adaptation strategies and investment in sustainable practices. The tailings dam failure in Zambia, a separate event, underscores the importance of responsible mining practices and robust environmental regulations to prevent similar incidents and their economic fallout.
The economic angle emphasizes the need for the semiconductor industry to adapt and invest in resilient supply chains. This includes diversification of copper sources, technological innovation to reduce water consumption, and the development of alternative materials. The future of the industry depends on its ability to navigate these challenges and ensure a stable supply of critical materials in a changing climate.