Shortages of crucial chip packaging material threatens AI accelerator supply chains — Nittobo's Fukushima plant is tripling capacity, but it'll take years before market

Shortages of specialist glass-fiber cloth (T-glass) crucial for AI chip packaging are threatening supply chains for AI accelerators. Nittobo, controlling 90% of the global T-glass supply, is tripling capacity at its Fukushima plant, but new supply won't be available until mid-2027. The scarcity of T-glass is driving prices up by 20-30% and causing lead times for downstream materials to stretch. The demand surge, particularly from hyperscalers for larger chip packages, is exacerbating the shortage, with Nittobo's dominance making it challenging for new entrants to enter the market. The imbalance in T-glass supply is not expected to be resolved until the second half of 2027 at the earliest, with potential impacts on other critical materials in the IC substrate stack.