{"id":237287,"date":"2026-01-14T09:57:11","date_gmt":"2026-01-14T09:57:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/237287\/"},"modified":"2026-01-14T09:57:11","modified_gmt":"2026-01-14T09:57:11","slug":"apple-faces-critical-shortage-as-ai-boom-strains-supply-chain","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/237287\/","title":{"rendered":"Apple faces critical shortage as AI boom strains supply chain"},"content":{"rendered":"

\t\"TSMC<\/p>\n

Nikkei Asia reports<\/a> that Apple has been scrambling to solve a glass cloth shortage, with the supply crunch projected to last until at least the second half of 2027. Here\u2019s what that means.<\/p>\n

\u2019One of the biggest bottlenecks for 2026\u2019<\/p>\n

According to Nikkei Asia<\/a>, Apple was one of the first companies to turn to glass cloth fiber as part of the substrate to iPhone chips, partly due to its \u201cdimensional stability, rigidity and ability to facilitate high-speed data transmission\u201d.<\/p>\n

As Nikkei Asia explains it:<\/p>\n

Glass cloth is a critical component in chip substrates and printed circuit boards (PCBs), themselves the building blocks of electronic devices, and the most advanced types of this cloth are made almost exclusively by one Japanese company: Nitto Boseki, or Nittobo for short.<\/p>\n

The problem is that, thanks to the AI boom, companies such as Nvidia, Google, and Amazon have also been turning to high-end glass cloth as part of the substrate for their AI chips, creating a supply crunch much like the memory chip shortage<\/a> that has driven prices up in recent weeks.<\/p>\n

That pressure has reportedly prompted Apple, AMD, and Nvidia to dispatch staff to Japan in an effort to secure supplies, an initiative that ultimately went nowhere. As one source told Nikkei Asia, \u201cNo additional capacity is no additional capacity, even if you pressure Nittobo.\u201d<\/p>\n

In an attempt to address the situation, in addition to reaching out to the Japanese government, Nikkei Asia says that Apple has also been turning to alternative sources. However, bringing new suppliers up to spec remains a challenge:<\/p>\n

Apple is also working hard to cultivate alternative sources, including sending employees to a small Chinese glass fiber maker known as Grace Fabric Technology (GFT) and asking [Mitsubishi Gas Chemical] to help oversee the Chinese material supplier\u2019s quality improvement, two sources familiar with the matter said.<\/p>\n

And<\/p>\n

Many new entrants are hoping to capitalize on the constrained supply, such as Taiwan Glass, a traditional glass maker based in Taipei, and China\u2019s Taishan Fiberglass, Grace Fabric and Kingboard Laminates Group.<\/p>\n

But the technological barriers to entry are extremely high \u2014 every glass fiber is much thinner than a human hair and must be perfectly round and free of any bubbles \u2014 and newcomers are struggling to achieve adequate capacity and consistent quality, people familiar with the situation said. No tech giant is willing to risk mounting their high-end chips on substrates that could compromise the quality of its final products, industry executives told Nikkei Asia.<\/p>\n

Finally, the report<\/a> also mentions Qualcomm, one of the largest mobile chip providers, as yet another company scrambling to mitigate the situation, with no short-term solution in sight.<\/p>\n

You can find Nikkei Asia\u2018s report here<\/a>.<\/p>\n

Accessory deals on Amazon<\/p>\n

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