This article first appeared on GuruFocus .
Apple ( NASDAQ:AAPL ) and Qualcomm ( NASDAQ:QCOM ) are growing increasingly concerned about tight supplies of Japan's high end glass cloth fiber, a critical material used in advanced chip substrates and printed circuit boards, according to a Nikkei Asia report.
The report said the most advanced glass cloth, known as T glass, is produced almost exclusively by Japanese supplier Nitto Boseki, creating a supply squeeze as demand surges from AI related chip production. Apple was an early adopter of the material for iPhones, but the rapid expansion of AI hardware has pulled in new buyers, including Nvidia ( NASDAQ:NVDA ), Amazon ( NASDAQ:AMZN ), and Alphabet's Google ( NASDAQ:GOOG ), intensifying competition for limited output.
Industry executives cited by Nikkei described the shortage as one of the most significant bottlenecks for the electronics and AI industries heading into 2026. Apple has reportedly sent staff to Japan and engaged government officials to help secure supplies, while also exploring alternative sources that would require lengthy testing and qualification.
constrained access to advanced substrate materials could influence production timelines and costs across smartphones, servers, and AI accelerators. Supply conditions are not expected to ease meaningfully until new capacity comes online in the second half of 2027.
