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The booming demand for AI chips has triggered a severe shortage in the supply of T-glass fiber fabric. As a key supplier in the market, Nitto Boseki has announced its intention to gradually ramp up production capacity, starting from the end of this year. The company aims to triple its capacity by 2028, in comparison to the levels recorded in 2025. Nitto Boseki has noted that, even with the introduction of new production lines, it will remain a formidable challenge to keep pace with the swiftly escalating demand. Consequently, the company has decided to implement price increases this year.
Analysts from Citigroup project that the price hikes could reach 25% or potentially exceed this figure. Furthermore, this wave of price increases is likely to be transmitted down the supply chain, ultimately leading to higher prices for end-user products such as smartphones and laptops.
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