AI is locked in glass fiber: only a Japanese company produces the necessary components, and demand exceeds supply

How Japanese glass fiber affects AI chip growth

1. What’s behind the semiconductor shortage
In current discussions about component shortages, production limits of specific items are often cited. Yet sometimes the problem lies deeper—in the supply chain for materials that seem less obvious.

2. T‑glass fiber as a key material
AI chips require a special type of glass fiber—T‑glass. It is used in the chip substrate and provides structural integrity at high temperatures encountered during operation.

3. Who supplies T‑glass
The sole Japanese producer of this fiber is Nittobo.

* Historically, Nittobo worked in loom equipment but quickly shifted to glass fiber thanks to similar technologies and became a market leader.
* In the T‑glass arena it has accumulated unique technologies and dominant market positions.

4. Why prices are rising
The Wall Street Journal notes that high demand for Nittobo’s products forced the company to raise prices. Prices are expected to rise this year by more than 25 %.

This is not the only case:

* Resonac plans to increase prices by over 30 % for certain items.
* Other Japanese suppliers, such as Ajinomoto (a food additive manufacturer), also develop special films for chip packaging that complement glass fiber.

5. Nittobo’s development plan
The company isn’t just “hiking” prices for the AI boom.

* By 2028 it intends to triple its glass‑fiber production volume, starting at the end of this year.
* Nevertheless, even with such capacity growth, demand in the coming months will still outstrip supply.

6. Financial results and strategic approach
In the last fiscal year Nittobo recorded a record operating profit of $104 million.

Analysts note that Japanese companies usually exercise caution regarding rapid production scaling: overly optimistic forecasts may not materialize. Thus the AI boom is seen as insufficiently long‑term for radical capacity expansion.

Therefore, the critically important material—Nittobo’s T‑glass fiber—plays a key role in AI chip manufacturing, and its price dynamics and scaling plans directly affect the entire semiconductor supply chain.