TL;DR
Nikkei Asia reports Apple is confronting a shortage of high-end glass cloth used in chip substrates, a bottleneck that could persist into the second half of 2027. The tight supply — driven in part by rising AI-chip demand — has pushed Apple and other chip customers to seek alternate suppliers and government help, but scaling consistent, high-quality production remains difficult.
What happened
According to Nikkei Asia, Apple has been working to address a shortage of advanced glass cloth, a material used in chip substrates and printed circuit boards for its dimensional stability and signal-transmission properties. Most of the highest-grade product is produced almost exclusively by Nitto Boseki (Nittobo) in Japan. The surge in demand from AI-focused companies building high-performance accelerators has intensified competition for the material, creating a supply squeeze. Apple, AMD and Nvidia reportedly sent personnel to Japan to try to secure more supply but found capacity limits could not be forced to expand. Apple has also sought help from the Japanese government and moved to develop alternative sources, including engagement with Chinese maker Grace Fabric Technology and enlisting Mitsubishi Gas Chemical to assist quality upgrades. Several potential new entrants are attempting to scale production, but precise manufacturing tolerances make rapid qualification and capacity increases challenging. Qualcomm is also among the firms working to mitigate the shortage.
Why it matters
- Glass cloth is a key input for chip substrates and PCBs; shortages can ripple through semiconductor manufacturing.
- Concentrated production at a small number of suppliers raises supply-chain fragility for multiple chip customers.
- Rising demand from AI chip programs is intensifying competition for specialty materials previously dominated by consumer-electronics needs.
- Difficulty in quickly qualifying alternative producers could prolong the bottleneck and complicate production planning.
Key facts
- Nikkei Asia reports Apple has been addressing a shortage of glass cloth used in chip substrates.
- High-end glass cloth is used in substrates and PCBs for properties such as dimensional stability and support for high-speed data transmission.
- Most advanced glass cloth is produced almost exclusively by Japanese firm Nitto Boseki (Nittobo), per the report.
- AI-demand from companies like Nvidia, Google and Amazon has increased competition for the material, contributing to a supply crunch.
- Apple, AMD and Nvidia reportedly dispatched staff to Japan to secure supplies but found no immediate expansion of Nittobo capacity.
- Apple has engaged alternative suppliers, including sending teams to Chinese firm Grace Fabric Technology and involving Mitsubishi Gas Chemical on quality oversight.
- New industry entrants named in the report include Taiwan Glass, Taishan Fiberglass, Grace Fabric and Kingboard Laminates Group.
- Technical barriers are high: manufacturers must produce glass fiber thinner than a human hair with precise roundness and no bubbles, according to sources.
- Qualcomm is also mentioned as working to mitigate the situation, with no short-term fix identified in the report.
- Nikkei Asia projects the supply crunch could last until at least the second half of 2027.
What to watch next
- Whether Nittobo can expand production capacity and on what timeline — not confirmed in the source.
- Progress and timescale for qualifying and scaling alternative suppliers such as Grace Fabric Technology — not confirmed in the source.
- Any formal outcomes from Apple’s outreach to the Japanese government or industrial partners — not confirmed in the source.
Quick glossary
- Glass cloth: A woven material made from glass fiber used in electronics for substrates and circuit boards; valued for stability and signal properties.
- Chip substrate: The structural layer that supports and connects semiconductor dies to a circuit board, often requiring specialized materials.
- Printed circuit board (PCB): A board used to mechanically support and electrically connect electronic components using conductive pathways.
- AI accelerator: A specialized processor designed to speed up artificial intelligence workloads such as machine learning model training and inference.
Reader FAQ
Is Apple confirmed to be facing a glass-cloth shortage?
Yes. Nikkei Asia reports Apple has been scrambling to address a shortage of high-end glass cloth used in chip substrates.
How long is the shortage expected to last?
Nikkei Asia projects the supply crunch could continue until at least the second half of 2027.
Which suppliers make the advanced glass cloth?
The report says most advanced types are produced almost exclusively by Nitto Boseki (Nittobo) in Japan.
Will this shortage delay iPhone production or other Apple products?
Not confirmed in the source.
Are other chipmakers affected?
Yes. The report names Nvidia, Google, Amazon, AMD and Qualcomm among firms contending with the constrained supply.
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