Nittobo’s Glass Web: How a Tiny Japanese Textile Firm Became the AI Industry’s Most Sought-After Supplier

As AI’s insatiable appetite for physical resources grows, a 1,000-year-old textile company is becoming the most powerful bottleneck in tech.

Major tech companies like Apple, Nvidia, Google, and Amazon are competing to secure supply of low-coefficient-of-thermal-expansion (CTE) glass (T-Glass) from Japanese manufacturer Nitto Boseki (Nittobo).

T-Glass is critical for high-speed data transmission in AI components, PCBs, and next-gen processors. Nittobo controls a dominant share of advanced glass cloth production, with Japanese firms holding over 70% of the global market.

Supply constraints will persist until 2027, with alternatives from Nan Ya Plastics (20% capacity by 2027) and Unitika offering limited relief.

Nikkei Asia noted:

This is one of the biggest bottlenecks for the electronics-making and AI industry for 2026.

Apple has lobbied Japanese government officials and explored alternative suppliers to secure T-Glass.

Chinese competitors are emerging but lack the capability to produce T-Glass at scale. Supply chain pressures could delay AI industry growth and raise component costs for consumer devices.