Glass fiber fabric shortage impacts AI and tech supply chains

An inconspicuous yet critically important material has suddenly found itself at the heart of a global technological race. This refers to high-quality glass fiber fabric, which is used in chip substrates and printed circuit boards and is hidden inside iPhones, servers, and graphics accelerators. Due to the AI boom, demand for this material has sharply increased, and its shortage has forced Apple, Nvidia, Google, Amazon, and other corporations to literally compete for access to limited supplies.

Nearly all of the most advanced glass fiber fabric today is produced by one Japanese company—Nitto Boseki. Apple was among the first to use its products, back when there were no supply issues. However, the growth of AI infrastructure has led to explosive demand for high-performance printed circuit boards, and now manufacturers of server and graphics chips are vying for the same resource. As a result, this material shortage is already being viewed as one of the key technological bottlenecks of 2026.

According to sources, Apple is taking emergency measures to protect its supply chain. In the fall, the company sent employees to Japan, including to partner Mitsubishi Gas Chemical, which produces substrates based on BT resin and itself depends on Nitto Boseki's glass fiber fabric. Moreover, Apple has approached Japanese authorities with a request to help increase supplies, as the company is preparing important products, including the first foldable iPhone, and is counting on a recovery in the smartphone market.

Simultaneously, Apple and other players are seeking alternatives. The company is exploring the possibility of working with Chinese glass fiber manufacturers and testing materials with lower specifications, but such replacements require lengthy verification and carry risks to quality. The problem is complicated by the fact that requirements for this material are extremely strict: fibers thinner than a human hair, perfectly round and without the slightest defects, with any error inside the substrate making the chip irreparable.

The situation with glass fiber fabric is just part of a broader picture. The AI boom has already shaken up the memory market, and now other elements of the electronics supply chain are under threat, from drills for printed circuit boards to specialized laser machines. Japanese suppliers, traditionally dominant in narrow but critically important niches, are in no hurry to sharply ramp up production, fearing a repeat of the overproduction crisis. As a result, even such an "invisible" material could become a factor capable of slowing down the development of the entire industry.