A critical shortage of T-glass, a specialized glass-fiber cloth essential for advanced AI chip packaging, is threatening AI accelerator supply chains. Japanese company Nittobo controls roughly 90% of the global T-glass supply, and scaling production is slow due to complex, high-temperature manufacturing processes.
While Nittobo is tripling capacity at its Fukushima plant, the new supply will not reach the market until mid-2027. The current supply squeeze has already caused prices to rise 20-30% and led to extended lead times for downstream materials.
The shortage is driven by hyperscalers demanding ever-larger AI chip packages, which require more T-glass per unit. Analysts note that T-glass has specific properties difficult to replace, and the historically thin-margin substrate industry is vulnerable to such sudden demand surges.
Main topics: AI chip supply chain bottleneck, shortage of T-glass packaging material, Nittobo's market dominance and expansion plans, and the technical and economic factors behind the constraint.