The shortage of glass cloth fiber is affecting major tech companies like Apple, which anticipates the supply issue will persist until at least the second half of 2027. This material is essential for the substrates used in high-performance chips, particularly for devices such as the iPhone.
As demand surges due to the growing AI sector, companies including Nvidia, Google, and Amazon are also competing for the limited supplies of high-end glass cloth, exacerbating the crisis. Efforts from Apple, along with AMD and Nvidia, to negotiate with Japan's Nitto Boseki for additional capacity have not yielded results.
In response, Apple is exploring alternative suppliers, including a small Chinese firm, Grace Fabric Technology, and seeking assistance from Mitsubishi Gas Chemical to improve quality standards. Other manufacturers, such as Taiwan Glass and Taishan Fiberglass, are attempting to enter the market, but face significant technological challenges in meeting the rigorous specifications required for chip substrates.