As reported by Nikkei Asia, the global upswing in demand for artificial intelligence (AI) chips has put Apple in a tough spot, as it now confronts a worldwide scarcity of high - end glass cloth fiber. This particular material holds immense significance in the production of printed circuit boards and chip substrates for devices like the iPhone. Notably, the market for the top - tier products of this material is almost exclusively dominated by the Japanese manufacturer Nittobo.

In the context of the industry, Nittobo has been rather restrained in expanding its production capacity. New production facilities are not anticipated to become operational until the second half of 2027. Given this situation, tech behemoths such as Apple are taking proactive measures. They are on the hunt for alternative suppliers. This search has led them to engage with the Japanese government in hopes of finding solutions and also to nurture relationships with Chinese suppliers.

However, the process of testing and verifying alternative materials is a time - consuming one. From a business and technological perspective, ensuring that these new materials meet the stringent quality and performance standards required for high - end electronic devices is no easy feat. Consequently, it will be challenging to ease the supply shortage in the near future.