Tech Firms Face Glass Cloth Shortage for AI Chips

Major technology companies, including Apple, Nvidia, and Qualcomm, are grappling with a severe shortage of high-end glass cloth, a specialized material critical for advanced chip production, amid surging demand driven by artificial intelligence applications.

The shortage stems from the rapid expansion of AI infrastructure, which has intensified competition for limited supplies of glass cloth used in printed circuit boards and chip substrates. This fine-woven fabric of ultra-thin glass fibers, thinner than a human hair, provides essential stability, heat resistance, and support for high-speed data transmission in devices ranging from smartphones to AI servers. According to industry reports, the material is embedded deep within chip layers, where defects cannot be repaired, making flawless quality non-negotiable for high-performance electronics.

Nitto Boseki, a Japanese firm and the primary supplier capable of producing the advanced grade at scale, has been overwhelmed by orders. Apple, which has relied on Nitto Boseki's premium glass cloth for years in products like iPhones and Macs, now faces constraints alongside other firms such as Google, Amazon, AMD, and Broadcom. The...