Apple CEO Tim Cook has successfully built a top-notch supply chain in the tech industry, but even Apple is now facing a challenge due to a surge in demand for a key component from a single supplier driven by AI technology.
Despite overcoming the challenges of COVID-19 and trade tariffs, the artificial intelligence boom is putting strain on Apple’s supply chain. Nitto Boseki (Nittobo), the sole supplier of high-quality glass cloth for PCBs, is struggling to meet the increasing demand. While they are working on increasing production capacity, new lines won’t be operational until late 2027, leaving Apple in a critical situation in the meantime.
Apple has been relatively unaffected by supply issues with their Apple silicon systems-on-a-chip, but the competition for high-performance PCBs among tech giants like Google and Nvidia is creating a shortage, as these boards require Nittobo’s glass cloth. This has led to a risk of supply shortages for Apple and other tech firms.
Industry insiders are calling this shortage “one of the biggest bottlenecks for the electronics and AI industry in 2026.” Apple is exploring options like contracting with alternative suppliers or using lower-quality materials, but it may not be enough to offset the shortage at Nittobo.
Additionally, Apple is facing rising PCB development costs and tooling costs due to the complexity of AI server boards. If the demand continues to rise and supply remains limited, consumers may face difficulties in finding Apple products in 2026.
Manufacturers are actively working on improving processes and finding alternative suppliers to alleviate the bottleneck, but the race is on to secure the necessary components to meet production deadlines.
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