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Nittobo faces widening supply shortage for T-glass as AI server demand scales through 2028
Friday, March 27, 2026 at 11:00 AM
A report from Prismark indicates a widening supply deficit for Nittobo's low thermal expansion 'T-glass' fiber used in high-end AI server substrates. While total market capacity for similar materials is growing with competitors like Taiwan Glass and Nan Ya Plastics expanding, Nittobo remains the preferred choice for major hyperscalers including NVIDIA, Google, and Amazon. Nittobo plans to invest $530 million to double its production capacity by 2028, but specialized demand is expected to outpace this expansion.
Context
The AI server supply chain is facing a widening structural bottleneck as Nittobo (Nitto Boseki), the dominant producer of low-CTE T-glass fiber, struggles to meet soaring demand through 2028. This specialized glass cloth is essential for IC substrates and advanced packaging like Nvidia’s CoWoS, as it prevents warping in large-scale chips. While Nittobo is investing $530 million to double its capacity and has partnered with Nanya Plastics to handle 20% of its fabric weaving by 2027, Prismark forecasts that the supply gap will continue to expand. Google, Amazon, and Nvidia are reportedly bypass-buying or specifically designating Nittobo material to ensure high-performance yields.
Market analyst Hachemi estimated in a March 2026 report that the supply-demand imbalance “won’t be resolved until the second half of 2027 at the earliest,” warning that similar chokepoints could emerge in copper foil and laminates. Currently, Nittobo produces 500,000 m² of the material, vastly outstripping the combined output of competitors like Taiwan Glass and Nanya Plastics. Although competitors are expected to capture 45% of the total market capacity by 2028, the specific preference for Nittobo-grade T-glass among big tech firms remains a critical constraint for next-generation AI infrastructure.
Sources (10)
February 21, 2025 - 10-K: Annual report pursuant to Section 13 and 15(d) | TTM Technologies, Inc. (TTMI)10-KInvestors Relations | NittoboApple supplier Nittobo to roll out improved glass cloth crucial to AI chips - Nikkei Asia[News] Nittobo Expands Glass-Fiber Output with Nan Ya; Nan Ya to Handle 20% by 2027 Amid AI SurgeShortages of crucial chip packaging material threatens AI accelerator supply chains — Nittobo's Fukushima plant is tripling capacity, but it'll take years before market | Tom's HardwareGlobal Low Dielectric Glass Fibre Market Overview 2025[PDF] Semiconductors
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