Amid the AI wave, not only are GPU chips in short supply, but even the most upstream basic materials are now facing severe shortages, potentially threatening the production of Apple's next-generation iPhone. According to...Nikkei Asia ReportApple and Qualcomm are facing a supply crisis for the core material "glass cloth". In order to ensure the smooth shipment of new products such as "iPhone 18", Apple has even sent personnel to the Japanese supplier's factory to "monitor the order" and sought the assistance of the Japanese government to coordinate.
What is "fiberglass cloth"? Why can it hold an apple in place?
This isn't referring to the protective glass on a phone screen, but rather an insulating material, like thick cling film, deeply embedded inside the chip substrate. This fiberglass cloth, woven finer than a human hair, forms the "skeleton" of the circuit board, supporting the chip and ensuring stable signal transmission.
The report points out that the shortage is not of ordinary materials, but of high-end T-glass. This material has high rigidity and a low coefficient of thermal expansion, making it resistant to deformation when heated, and is an indispensable key to manufacturing high-performance AI chips and high-end mobile phone processors.
However, the production technology of T-glass has extremely high barriers to entry, and the market is almost monopolized by Nittobo, a Japanese company.
The AI-driven rush for materials is spreading, and new production capacity is insufficient to address the immediate needs.
The root of the crisis lies in the explosive growth in demand for AI chips. Companies including NVIDIA and AMD are vying for Nittobo's high-end production capacity, leading to a crowding-out effect on Apple and Qualcomm.
Despite visits from major manufacturers, Nittobo's top management maintained a clear stance, prioritizing quality over blind expansion. Furthermore, due to the extremely high standards required for T-glass production—zero bubbles and zero defects—new capacity is not expected to be operational until the second half of 2027. This is far too late for the iPhone 18, which is projected to launch in 2026.
Apple makes rare big moves: on-site supervision at factories and seeking government intervention.
Faced with the risk of supply chain disruptions, Apple has taken exceptionally proactive emergency measures:
• Send personnel to the factory:Reports indicate that Apple has already sent employees directly to Japan in the fall of 2025 to work at Mitsubishi Gas Chemical, a supplier of chip substrate materials. Since Mitsubishi is highly dependent on Nittobo for raw materials, Apple hopes that by having employees on-site, it can ensure that its own orders are prioritized.
• Administrative Coordination:Apple even contacted Japanese government officials, attempting to use administrative power to coordinate and ensure a stable supply of strategic materials.
• Seeking registration:Apple has discussed using secondary fiberglass cloth, but the verification process is time-consuming and carries quality risks. It has also begun contacting other manufacturers such as Grace Fabric Technology and has asked Mitsubishi to help improve its quality, but progress does not seem to be going smoothly.
Analysis of viewpoints
This incident once again highlights the "fragility" of the global technology supply chain. In the past, the market's focus has mostly been on TSMC's advanced manufacturing processes, but in fact, basic materials like T-glass, which are located further upstream and monopolized by a single manufacturer, are often the real bottlenecks.
When high-margin orders for AI servers flood the supply chain, even consumer electronics giants like Apple have to lower their standards and use on-site presence and political influence to secure resources. If Nittobo's production capacity issues cannot be resolved in the short term, it's possible that the iPhone 18 will have to compromise on performance (by using inferior materials) or output. This also explains why Apple has been so actively pursuing supply chain diversification in recent years; being "held hostage" is an absolutely intolerable risk in the eyes of CEO Tim Cook.
