Semiconductor Industry Could Short Out as Copper Runs Dry
Arthur T Knackerbracket has processed the following story:
Climate change could pose a threat to the technology industry as copper production is vulnerable to drought, while demand may grow to outstrip supply anyway.
According to a report out today from PricewaterhouseCoopers (PwC), copper mines require a steady water supply to function, and many are situated in places around the world that face a growing risk of severe drought due to shifts in climate.
Copper is almost ubiquitous in IT hardware because of its excellent electrical conductivity, from the tracks on circuit boards to cabling and even the interconnects on microchips. PwC's report focuses just on chips, and claims that nearly a third (32 percent) of global semiconductor production will be reliant on copper supplies that are at risk from climate disruption by 2035.
If something is not done to rein in climate change, like drastically cutting greenhouse gas emissions, then the share of copper supply at risk rises to 58 percent by 2050, PwC claims. As this seems increasingly unlikely, it advises both copper exporters and semiconductor buyers to adapt their supply chains and practices if they are to ride out the risk.
Currently, of the countries or territories that supply the semiconductor industry with copper, the report states that only Chile faces severe drought risks. But within a decade, copper mines in the majority of the 17 countries that source the metal will be facing severe drought risks.
PwC says there is an urgent need to strengthen supply chain resilience. Some businesses are taking action, but many investors believe companies should step up their efforts when it comes to de-risking their supply chain, the firm adds.
According to the report, mining companies can alleviate some of the supply issues by investing in desalination plants, improving water efficiency and recycling water.
Semiconductor makers could use alternative materials, diversify their suppliers, and adopt measures such as recycling and taking advantage of the circular economy.
[...] This was backed up recently by the International Energy Agency (IEA), which reckons supplies of copper will fall 30 percent short of the volume required by 2035 if nothing is done to open up new sources.
One solution is for developed countries to do more refining of copper - plus other key metals needed for industry - and form partnerships with developing countries to help open up supplies, executive director Fatih Birol told The Guardian.
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