More than 100 years ago, two Japanese textile companies, Fukushima Boseki Co., Ltd. and Katakura Seishi Iwashiro Bosekisho, joined forces to create Nitto Boseki Co., Ltd., now known as Nittobo. Fast forward a century, and this giant has become essential for the materials crucial to the future of chip technology: glass fabric.
Technological Glass Artisans
Nittobo was the pioneer in industrially producing carbon fiber, achieving this feat in 1938—almost simultaneously with Owens Corning Fiber Glass in the United States. By 1969, they developed their “crystal fabric,” a type of glass cloth, which found applications in printed circuit boards.
Hello, T-glass
The evolution of this material led to the introduction of T-glass in 1984, a specialized glass fabric used as a substrate in various chip types. Unlike standard fiberglass used in surfboards or insulation, T-glass boasts a low coefficient of thermal expansion, ensuring optimal performance even under extreme operational conditions.
Japan, We Have a Problem
Experts, as reported by Nikkei, are now warning that the scarcity of this material poses a significant challenge to chip manufacturing, especially as we approach 2026. Nittobo stands as the only company globally capable of producing this high-quality glass fabric, integral in chips used by devices like the iPhone. Apple was among the first to forge a partnership with Nittobo for this critical material.
Everyone Loves Nittobo
The excellent quality of T-glass has caught the attention of tech titans such as NVIDIA, Google, and Amazon, intensifying competition for this crucial supply. Reports indicate that inventory levels are depleting rapidly, raising concerns about Nittobo’s ability to meet soaring demand.
Apple Asks for Help
Amid the escalating situation, Apple has sent managers to Japan, even reaching out to the Japanese government for assistance in securing Nittobo’s supplies. Their focus remains on ensuring a steady flow of materials for crucial releases, including the eagerly anticipated foldable iPhone.
Capacity Will Grow, But Not Immediately
Nittobo acknowledges the pressing situation but indicates that immediate solutions are unlikely. A company executive stated, “If we do not have additional capacity, we do not have additional capacity.” Any substantial improvement in supply won’t materialize until production enhancements are realized in the second half of 2027.
Looking for Alternatives
In response to the crisis, Apple and Qualcomm are actively exploring alternative suppliers in China and Taiwan. However, the high quality demanded for glass substrates makes it a formidable challenge, as imperfections could ruin entire batches of components.
AI Causes Chaos Again
The AI industry’s insatiable demand for DRAM and NAND memory chips has already contributed to massive price hikes across the tech sector. A similar phenomenon is occurring with glass fabric, where the overwhelming needs of AI chip manufacturers affect traditional chip makers and consumers negatively.
Bad Business
The situation resembles the memory market, where materials are often allocated to the highest bidders, typically companies like NVIDIA with their generous profit margins. Consumer electronics manufacturers find themselves trapped, facing declining sales forecasts.
Nittobo Does Not Want to Saturate the Market
In light of this demand, Nittobo is taking a cautious approach to business expansion. The company, having previously suffered from overstock in 2022, is wary of aggressively scaling production. This cautious outlook echoes sentiments from other Japanese suppliers, as history looms large over their decision to expand again.
In summary, Nittobo’s glass fabric is not just a material; it’s a crucial lifeline for the future of the iPhone and AI technology. As challenges loom, both manufacturers and consumers brace for what this could mean for innovation and product release timelines.