The shortage of AI chips is linked to a shortage of glass fiber: production is carried out by only one company

The shortage of semiconductor components due to increased demand for AI has been widely known for a long time. However, additional details have emerged: AI chip production also uses glass fiber of a certain quality, which, unfortunately, is produced by only one company, Nittobo, based in Japan.

Japanese industrial company Nittobo

Nittobo has been operating in the glass fiber segment for many years, gradually gaining a dominant position. The company possesses a great deal of know-how; for example, it produces T-glass fiber for printed circuit boards and semiconductor components. This type of glass fiber is used as a reinforcing element and is applied in chip substrates, enabling the achievement of structural stability.

Against the backdrop of increased demand for the company's products, prices are gradually rising. For example, prices for Nittobo products may increase by 25% this year. This chip material supplier is not the only one raising prices for its products. Resonac is also expected to raise prices, with an increase of more than 30% expected.

By 2028, Nittobo plans to triple its glass fiber production. But despite the company's global plans, production will not be enough to meet demand.

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