{"id":121303,"date":"2025-07-31T09:28:04","date_gmt":"2025-07-31T01:28:04","guid":{"rendered":"https:\/\/honwaygroup.com\/drought-and-surging-demand-a-copper-supply-crisis-is-approaching-the-semiconductor-industry\/"},"modified":"2025-08-01T16:53:37","modified_gmt":"2025-08-01T08:53:37","slug":"drought-and-surging-demand-a-copper-supply-crisis-is-approaching-the-semiconductor-industry","status":"publish","type":"post","link":"https:\/\/honwaygroup.com\/en\/drought-and-surging-demand-a-copper-supply-crisis-is-approaching-the-semiconductor-industry\/","title":{"rendered":"Drought and Surging Demand: A Copper Supply Crisis Is Approaching the Semiconductor Industry"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">As global digital transformation accelerates, the importance of copper in the technology industry is unprecedented. It is a core conductive material for semiconductor chips, data center servers, electric vehicle batteries, and renewable energy equipment. However, a hidden concern is emerging: <strong>droughts caused by climate change are threatening the copper supply, and with demand skyrocketing, the global copper market is entering a period of unprecedented pressure.<\/strong><\/p>\n\n<p class=\"has-medium-font-size\">A new report by PwC points out that without an effective response, <strong>nearly one-third of the world&#8217;s semiconductor production could be at risk from copper supply disruptions by 2035<\/strong>, posing a profound impact on the high-tech industry. This article will provide an in-depth analysis of the causes of the copper supply dilemma, its impact on the industry, and possible solutions.<\/p>\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li class=\"\"><a href=\"#%E4%B9%BE%E6%97%B1%E5%A8%81%E8%84%85%E9%8A%85%E7%A4%A6%E4%BE%9B%E6%87%89%EF%BC%8C%E5%8D%8A%E5%B0%8E%E9%AB%94%E9%A6%96%E7%95%B6%E5%85%B6%E8%A1%9D\">Droughts Threaten Copper Supply, Semiconductors Bear the Brunt<\/a><\/li><li class=\"\"><a href=\"#%E9%9C%80%E6%B1%82%E6%8C%81%E7%BA%8C%E6%88%90%E9%95%B7%EF%BC%8C%E4%BE%9B%E6%87%89%E5%8D%BB%E9%9B%A3%E4%BB%A5%E8%B7%9F%E4%B8%8A\">Demand Continues to Grow, But Supply Struggles to Keep Up<\/a><\/li><li class=\"\"><a href=\"#%E4%B9%BE%E6%97%B1%E5%8A%A0%E5%8A%87%EF%BC%8C%E4%B8%BB%E8%A6%81%E7%94%A2%E9%8A%85%E5%9C%8B%E9%A2%A8%E9%9A%AA%E5%8D%87%E9%AB%98\">Droughts Intensify, Increasing Risk for Major Copper-Producing Countries<\/a><\/li><li class=\"\"><a href=\"#%E4%BE%9B%E6%87%89%E9%8F%88%E9%9F%8C%E6%80%A7%EF%BC%9A%E4%BC%81%E6%A5%AD%E6%87%89%E6%8E%A1%E5%8F%96%E7%9A%84%E6%87%89%E5%B0%8D%E7%AD%96%E7%95%A5\">Supply Chain Resilience: Countermeasures Businesses Should Take<\/a><\/li><li class=\"\"><a href=\"#%E5%9B%9E%E6%94%B6%E9%8A%85%E7%9A%84%E5%95%86%E6%A9%9F%EF%BC%9A%E5%BB%A2%E6%A3%84%E9%9B%BB%E4%BF%A1%E8%A8%AD%E5%82%99%E6%88%90%E6%96%B0%E4%BE%86%E6%BA%90\">The Business Opportunity in Recycled Copper: Obsolete Telecom Equipment as a New Source<\/a><\/li><li class=\"\"><a href=\"#%E5%83%B9%E6%A0%BC%E6%B3%A2%E5%8B%95%E8%88%87%E5%9C%B0%E7%B7%A3%E6%94%BF%E6%B2%BB%E5%9B%A0%E7%B4%A0%E7%9A%84%E5%BD%B1%E9%9F%BF\">Impact of Price Volatility and Geopolitical Factors<\/a><\/li><li class=\"\"><a href=\"#%E7%8F%BE%E5%9C%A8%E8%A1%8C%E5%8B%95%EF%BC%8C%E6%89%8D%E8%83%BD%E9%81%BF%E5%85%8D%E6%9C%AA%E4%BE%86%E5%8D%B1%E6%A9%9F\">Act Now to Avoid a Future Crisis<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-90adb12719ddce17af0223e75ba9f2dd\" id=\"&#x4E7E;&#x65F1;&#x5A01;&#x8105;&#x9285;&#x7926;&#x4F9B;&#x61C9;&#xFF0C;&#x534A;&#x5C0E;&#x9AD4;&#x9996;&#x7576;&#x5176;&#x885D;\">Droughts Threaten Copper Supply, Semiconductors Bear the Brunt<\/h2>\n\n<p class=\"has-medium-font-size\">Climate change is altering the global resource supply landscape, with a particularly severe impact on the copper mining industry. Copper mining is highly dependent on stable water resources, and many of the world&#8217;s major copper-producing regions are experiencing worsening droughts. According to the PwC report, if climate trends continue, <strong>32% of semiconductor production could be affected <\/strong>by copper supply disruptions by 2035, a proportion that is four times higher than it is today.<\/p>\n\n<p class=\"has-medium-font-size\">This constitutes a major risk for the semiconductor industry, as copper is a key conductive material in chip manufacturing, ubiquitous in everything from chip interconnects and circuit board traces to power supply modules. If the copper supply is disrupted, the entire IT and electronics supply chain will be under pressure.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-12fbea85235e11edb6606c98334d9a34\" id=\"&#x9700;&#x6C42;&#x6301;&#x7E8C;&#x6210;&#x9577;&#xFF0C;&#x4F9B;&#x61C9;&#x537B;&#x96E3;&#x4EE5;&#x8DDF;&#x4E0A;\">Demand Continues to Grow, But Supply Struggles to Keep Up<\/h2>\n\n<p class=\"has-medium-font-size\">In addition to supply risks, demand-side pressure is equally astonishing. According to forecasts by S&amp;P Global, <strong>global copper demand will double from 25 million metric tons per year to 50 million metric tons by 2035<\/strong>. The drivers behind this are the rapid growth of electric vehicles, renewable energy, data centers, and the semiconductor industry.<\/p>\n\n<p class=\"has-medium-font-size\">However, developing new copper mines is not easy; it takes an average of 16 years to go into production. Even if new mines were started today, they would not be able to keep up with the surge in demand over the next decade. Even with copper recycling, the massive supply-demand gap cannot be filled.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-6f994fe605efa5b5cc351244d295ca7e\" id=\"&#x4E7E;&#x65F1;&#x52A0;&#x5287;&#xFF0C;&#x4E3B;&#x8981;&#x7522;&#x9285;&#x570B;&#x98A8;&#x96AA;&#x5347;&#x9AD8;\">Droughts Intensify, Increasing Risk for Major Copper-Producing Countries<\/h2>\n\n<p class=\"has-medium-font-size\">Currently, only Chile is listed as a major copper supplier with a high drought risk, but PwC predicts that in a decade, most of the <strong>17 major copper-producing countries will face drought pressure<\/strong>. By 2050, if there is a lack of proactive decarbonization and climate action, the proportion of copper supply at risk could be as high as<strong> 58%<\/strong>, with a global impact.<\/p>\n\n<p class=\"has-medium-font-size\">This means that not only mining companies need to act, but the entire supply chain, including semiconductor and technology companies, must plan ahead to reduce their dependence on a single resource.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-dc0d943949d30fb46f261e8bf2084253\" id=\"&#x4F9B;&#x61C9;&#x93C8;&#x97CC;&#x6027;&#xFF1A;&#x4F01;&#x696D;&#x61C9;&#x63A1;&#x53D6;&#x7684;&#x61C9;&#x5C0D;&#x7B56;&#x7565;\">Supply Chain Resilience: Countermeasures Businesses Should Take<\/h2>\n\n<p class=\"has-medium-font-size\">PwC emphasizes that &#8220;enhancing supply chain resilience is a matter of urgency.&#8221; The following are proposed solutions from various parties:<\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"has-medium-font-size\"><strong>Mining company measures<\/strong>: Invest in <strong>desalination plants<\/strong>, improve <strong>water use efficiency<\/strong>, and promote <strong>water recycling<\/strong>.<\/li>\n\n\n\n<li class=\"has-medium-font-size\"><strong>Semiconductor manufacturer strategies<\/strong>: Introduce <strong>alternative materials<\/strong> (such as aluminum, advanced interconnect materials), achieve <strong>supplier diversification<\/strong>, and promote <strong>recycling and a circular economy<\/strong>.<\/li>\n\n\n\n<li class=\"has-medium-font-size\"><strong>Global cooperation<\/strong>: The International Energy Agency (IEA) recommends that developed countries strengthen <strong>refining capacity<\/strong> and establish partnerships with developing countries to jointly explore new resources.<\/li>\n<\/ul>\n\n<p class=\"has-medium-font-size\">If these measures can be implemented, they will, to a certain extent, alleviate copper supply pressure, but action must be accelerated, otherwise, future risks will be unbearable.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-e6f05bb4bb547ce52014aa5fc56df537\" id=\"&#x56DE;&#x6536;&#x9285;&#x7684;&#x5546;&#x6A5F;&#xFF1A;&#x5EE2;&#x68C4;&#x96FB;&#x4FE1;&#x8A2D;&#x5099;&#x6210;&#x65B0;&#x4F86;&#x6E90;\">The Business Opportunity in Recycled Copper: Obsolete Telecom Equipment as a New Source<\/h2>\n\n<p class=\"has-medium-font-size\">In the context of a tight supply, recycling offers another viable path. As telecom operators replace old copper wire communication equipment and optical fiber gradually replaces copper cables, the market may recover <strong>800,000 metric tons of copper<\/strong> over the next decade, with a market value of approximately <strong>7 billion US dollars<\/strong>.<\/p>\n\n<p class=\"has-medium-font-size\">While this recycled resource cannot completely solve the supply-demand imbalance, it represents a valuable market for recycled metals for businesses and is also in line with the ESG (Environmental, Social, and Governance) trend.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-1e7046a5fef0c9b8276e3a7eb37b59ef\" id=\"&#x50F9;&#x683C;&#x6CE2;&#x52D5;&#x8207;&#x5730;&#x7DE3;&#x653F;&#x6CBB;&#x56E0;&#x7D20;&#x7684;&#x5F71;&#x97FF;\">Impact of Price Volatility and Geopolitical Factors<\/h2>\n\n<p class=\"has-medium-font-size\">Supply chain pressure is not only from natural factors, but geopolitics is also a contributing force. Recently, US President Trump announced a <strong>50% tariff on imported copper<\/strong>, causing a surge in New York copper futures, which once skyrocketed by <strong>17%<\/strong>, with the price per pound reaching <strong>$5.89<\/strong>, marking the largest single-day increase since 1989. Future policy changes and international trade disputes will further exacerbate market uncertainty.<\/p>\n\n<h2 class=\"wp-block-heading has-ast-global-color-0-color has-text-color has-link-color wp-elements-ae2ff448bd4295e8678ce7fab489d918\" id=\"&#x73FE;&#x5728;&#x884C;&#x52D5;&#xFF0C;&#x624D;&#x80FD;&#x907F;&#x514D;&#x672A;&#x4F86;&#x5371;&#x6A5F;\">Act Now to Avoid a Future Crisis<\/h2>\n\n<p class=\"has-medium-font-size\">Copper is facing a dual challenge: <strong>rapidly rising demand <\/strong>and <strong>supply risks brought about by climate change<\/strong>. For the technology industry, this is not just a raw material problem, but a major issue of supply chain stability and production capacity security.<\/p>\n\n<p class=\"has-medium-font-size\">Businesses should start now to strengthen <strong>risk management<\/strong>, invest in <strong>resource alternatives and recycling<\/strong>, and promote a <strong>circular economy<\/strong> to cope with future uncertainties. As PwC states: &#8220;We can take action now, or we will pay a much higher price in the future.&#8221;<\/p>\n\n<p>Sources:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Climate change disrupts copper supply! The semiconductor industry faces a supply chain crisis, and companies are urgently seeking new solutions.<\/li>\n\n\n\n<li>Semiconductor industry could short out as copper runs dry<\/li>\n<\/ul>\n\n<p>We offer customized adjustments to the grinding process, tailored to meet processing requirements for maximum efficiency.<\/p>\n\n<p style=\"line-height:0.8\">Feel free to contact us and we will have specialist available to answer your questions.<\/p>\n\n<p style=\"line-height:0.8\">If you need customized quotations, you\u2019re also welcome to contact us.<\/p>\n\n<p style=\"line-height:0.8\">Customer Service Hours: Monday to Friday 09:00~18:00 (GMT+8)<\/p>\n\n<p style=\"line-height:0.8\">Phone: +886<a href=\"https:\/\/www.google.com\/search?q=%E5%AE%8F%E5%B4%B4&amp;oq=%E5%AE%8F%E5%B4%B4&amp;gs_lcrp=EgZjaHJvbWUqBggAEEUYOzIGCAAQRRg7MhAIARAuGK8BGMcBGIAEGI4FMgYIAhBFGDsyBwgDEAAYgAQyBggEEEUYPTIGCAUQRRg9MgYIBhBFGD0yBggHEEUYQdIBCDE5MDhqMGo3qAIIsAIB&amp;sourceid=chrome&amp;ie=UTF-8\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">7 223 1058<\/a><\/p>\n\n<p style=\"line-height:0.8\">If you have a subject that you want to know or a phone call that is not clear, you are welcome to send a private message to Facebook~~<\/p>\n\n<p style=\"line-height:0.8\">Honway Facebook: <a href=\"https:\/\/lihi.cc\/LhR8c\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">https:\/\/www.facebook.com\/honwaygroup<\/a><\/p>\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-ast-global-color-0-background-color has-background wp-element-button\" href=\"https:\/\/honwaygroup.com\/en\/honway-raw-materials\/\" target=\"_blank\" rel=\"noreferrer noopener\">We are Honway, by controlling our raw materials from the source, we ensure the quality of our products and offer you customized options.<\/a><\/div>\n<\/div>\n\n<ul class=\"wp-block-jetpack-sharing-buttons has-normal-icon-size jetpack-sharing-buttons__services-list\" id=\"jetpack-sharing-serivces-list\">\n<\/ul>\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<p>You may be interested in&#8230;<\/p>\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><p>[wpb-random-posts]<\/p>\n<\/div>\n<\/div>\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As global digital transformation accelerates, the importance of copper in the technology industry is unprecedented. It is a core conductive material for semiconductor chips, data center servers, electric vehicle batteries, and renewable energy equipment. However, a hidden concern is emerging: droughts caused by climate change are threatening the copper supply, and with demand skyrocketing, the global copper market is entering a period of unprecedented pressure.<br \/>\nA new report by PwC points out that without an effective response, nearly one-third of the world&#8217;s semiconductor production could be at risk from copper supply disruptions by 2035, posing a profound impact on the high-tech industry. This article will provide an in-depth analysis of the causes of the copper supply dilemma, its impact on the industry, and possible solutions.<\/p>\n","protected":false},"author":1,"featured_media":121089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[791,3166],"tags":[10276,8898],"class_list":["post-121303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-knowledge-column","category-technological-insights","tag-copper","tag-semiconductor"],"_links":{"self":[{"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/posts\/121303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/comments?post=121303"}],"version-history":[{"count":0,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/posts\/121303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/media\/121089"}],"wp:attachment":[{"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/media?parent=121303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/categories?post=121303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/honwaygroup.com\/en\/wp-json\/wp\/v2\/tags?post=121303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}