Core Viewpoint - The global shortage of high-end electronic-grade glass fiber cloth is significantly impacting the supply chain, with major companies like NVIDIA, Google, and Amazon competing for materials, leading to price increases and extended shortages expected to last until the second half of 2027 [3][4][5]. Group 1: Market Dynamics - The demand for Low CTE (low coefficient of thermal expansion) glass fiber cloth is rising due to its critical role in next-generation PCB materials, which enhances signal integrity and thermal stability [4][5]. - The collaboration between Nanya Plastics and Nitto Boseki aims to increase production capacity to meet the growing market demand for high-end glass fiber cloth [3][4]. - Nitto Boseki currently dominates the market, supplying over 90% of Low CTE glass fiber cloth globally, and has announced a 20% price increase for its products starting in Q3 2025 [6]. Group 2: Supply Chain Impacts - The shortage of glass fiber cloth is affecting the entire supply chain, with companies like Resonac announcing price hikes of over 30% for PCB materials due to rising costs of raw materials [6]. - Nanya Plastics has also indicated an 8% price increase for all CCL products and prepregs starting from November 20, 2025, due to the collective rise in international copper prices and other upstream materials [7]. - The ongoing supply constraints are expected to further escalate prices across the industry, impacting the production of advanced electronic materials [5][6].

Core Viewpoint - The article discusses the severe shortage of high-end electronic-grade glass cloth (glass cloth) required for AI chip substrates, driven by the explosive demand for artificial intelligence (AI) technologies. Major tech companies, including Apple, are competing for limited supplies, with Nvidia's CEO personally visiting suppliers to secure materials [5][12]. Group 1: Supply Shortage - The shortage of high-end glass cloth is primarily due to the dominance of Nittobo, which holds over 90% of the market share for Low CTE glass cloth, essential for AI chips and high-end processors [10][12]. - The production of Low CTE glass cloth requires high temperatures and expensive materials, making it a complex and costly process. The stability of glass cloth directly impacts the quality of substrates used in electronic devices [7][10]. - The demand for Low CTE glass cloth has surged not only from Nvidia but also from other companies like AMD, Google, and Amazon, leading to a situation similar to the DRAM chip shortage experienced last year [12][13]. Group 2: Market Dynamics - Nittobo has been the exclusive supplier for Nvidia's AI chips due to its ability to meet stringent quality requirements. The company has a long history in the glass fiber industry, having been established in 1923 [10][11]. - Other companies, such as Taiwan Glass and Taishan Fiberglass, are attempting to enter the market, but Nvidia has been cautious about including state-owned Taishan Fiberglass in its supply chain due to geopolitical sensitivities [15][17]. - Apple has proactively sought alternative suppliers, including Grace Fabric Technology, to secure its supply of Low CTE glass cloth, reflecting the competitive landscape and urgency in the supply chain [19][20].

Core Viewpoint - The article discusses the severe shortage of high-end electronic-grade glass cloth (glass cloth) required for AI chip substrates, driven by the explosive demand for artificial intelligence (AI) technologies. Major tech companies, including Apple, are competing for limited supplies, with Nvidia's CEO personally visiting suppliers to secure materials [3][5][10]. Group 1: Supply Shortage of High-End Glass Cloth - The electronic-grade glass cloth is a critical component for IC substrates and PCBs, essential for signal transmission in electronic devices. Its manufacturing requires high temperatures and expensive materials, leading to a supply bottleneck [5][7]. - Nittobo dominates the market, holding over 90% of the supply for Low CTE glass cloth, which is crucial for high-frequency and high-density designs in AI chips [7][9]. - The demand for Low CTE glass cloth has surged due to the needs of various companies, including Nvidia, AMD, Google, and Amazon, leading to a situation similar to the DRAM chip shortage experienced last year [9][10]. Group 2: Production Capacity and Expansion - Nittobo's production capacity is currently insufficient to meet the skyrocketing demand, with a forecast that supply issues may not improve until new production lines come online in 2027, which are expected to increase capacity by 20% [10]. - The company prioritizes quality over quantity in its production, which has contributed to the slow expansion of capacity [10]. Group 3: Alternative Suppliers and Market Dynamics - Nvidia is actively seeking alternative suppliers, such as Taiwan Glass, to mitigate the supply constraints caused by Nittobo's bottleneck. However, the initial production capacity from these suppliers will be limited [11][13]. - Apple has also taken proactive measures to secure its supply of Low CTE glass cloth, including engaging with smaller manufacturers and seeking government assistance to ensure material availability for upcoming products [14][15].