The issue is affecting Apple’s high-end glass cloth fibre, used in the construction of chipsets
Apple has finally been hit by the chip supply chain issues caused by AI, as the current shift in manufacturing is causing a global shortage of a key material.
According to Nikkei Asia, Apple is said to be struggling to secure enough of its high-end glass cloth fibre, which is a critical material used in printed circuit boards (PCBs) and chip substrates. This material is widely used in iPhones and other Apple devices.
Apple is struggling because the most advanced forms of glass cloth are produced almost entirely by a single supplier, Nitto Boseki (also known as Nittobo).
According to MacRumours, Apple began using Nittobo’s premium glass cloth chips years before AI drove the demand up (although exactly when is unknown), but the recent growth in AI workload has caused companies like Nvidia, Google, Amazon, AMD, and Qualcomm to switch to Nittobo, which puts pressure on its capacity.
Interestingly, Apple sent staff to Japan to protect its supply and spoke directly with Mitsubishi Gas Chemical, a company that produces substrate material (a base surface for coating commonly used in PCB construction) that relies on Nittobo’s glass cloth. It is also believed that Apple spoke to Japanese government officials to further secure supply.
Also, Apple is believed to be working to qualify alternative suppliers, but progress on that front has been slow. The tech giant has reportedly been working with glass cloth producer Grace Fabric Technology, with Mitsubishi Gas Chemical asked to help oversee quality improvements. There are potential entrants in both Taiwan and China that are attempting to scale production, but MacRumours notes that there have been issues with receiving consistent quality.
To add some context, each glass fibre must be extremely thin, uniform, and defect-free because it’s embedded deep within the chip substrate — it cannot be fixed or replaced once the chip is assembled. As a result, major manufacturers are hesitant to adopt lower-grade materials. Apple reportedly considered using lower-grade materials as a stopgap, but doing so would require extensive testing and validation, and wouldn’t immediately fix supply chain issues.
Source: Nikkei Asia via MacRumours
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