According to Nikkei Asia, as global demand for artificial intelligence chips rises sharply, Apple is encountering an increasingly severe supply chain challenge: a global shortage of high-end glass fiber cloth (Glass Cloth Fiber), a key material for future chips. The material plays a key role in the printed circuit boards and chip substrates used in devices such as iPhones, and the most advanced grades are almost exclusively supplied by Japanese manufacturer Nitto Boseki (Nittobo).
Apple was already using Nittobo’s high-end fiberglass cloth in its chips long before AI computing drove demand for similar materials to skyrocket. However, with the expansion of AI load, Nvidia, Google, Amazon, AMD, Qualcomm and other manufacturers have successively poured into the same supply chain, putting the already limited Nittobo production capacity under unprecedented pressure.
To ensure supply, Apple has recently taken a series of unconventional measures. According to reports, Apple sent employees to Japan last fall and stayed at Mitsubishi Gas Chemical. This company is responsible for producing chip substrate materials and also relies on Nittobo to provide fiberglass cloth. Apple is also believed to have contacted Japanese government officials seeking assistance in obtaining key materials.
While Apple is actively "protecting" existing supplies, it is also trying to certify alternative suppliers, but progress is slow. The company has approached several small and medium-sized Chinese fiberglass manufacturers, including Grace Fabric Technology, and asked Mitsubishi Gas Chemical to assist them in improving quality control. Other potential suppliers from Taiwan and China are also trying to expand production capacity, but industry insiders point out that it is still very difficult to consistently and stably achieve the quality levels required by Apple in this field.
The reason why the technical threshold is so high is that the process requirements of glass fiber itself are extremely strict. Each fiber must be extremely thin, extremely uniform, and virtually defect-free because the fiberglass cloth is encapsulated deep within the chip substrate and cannot be repaired or replaced once assembled. Because of this, major chip manufacturers are generally reluctant to use lower-grade materials during the transition period.
The report also mentioned that Apple has internally discussed using fiberglass cloth with a slightly lower technical level as a stopgap measure in the short term. However, this option would require a lengthy testing and validation process and would provide limited relief from supply pressure for 2026 products. Similar concerns also plague other chip manufacturers, showing that this "stuck war" around key materials has become a common structural challenge faced by the entire semiconductor and AI industry chain.