Nittobo, a Japanese company that originated in the textile industry, has ventured into the research and development of T-Glass, a key material for AI chip packaging. This material is crucial for the stable operation of high-end chips. Nittobo monopolizes 90% of the global high-end fiberglass cloth market, with no competitors in the T-Glass field. With the explosive growth in AI demand, the material is in short supply, creating a supply gap. This "cloth-selling company" has thus secured a crucial link in the global AI chip industry. Today, let's learn about Nittobo:
I. A Century of Transformation: From Textile Mill to AI Material Giant Nittobo's history can be traced back to a textile company founded in 1898. Officially established in 1923, it is one of Japan's oldest silk textile companies. In its early years, it relied on surplus electricity from irrigation canals built by the Meiji government, generating electricity while simultaneously producing textiles, focusing solely on textile-related products until 1963. 1969 was a crucial turning point. With the rise of computer and chip technology, the company targeted market demand and ventured into the field of glass cloth for printed circuit boards. After decades of dedicated development, Nittobo has transformed from a traditional textile factory into a leading supplier of core AI materials, achieving a remarkable industrial upgrade.
II. Flagship Product T-Glass: The "Stable Cornerstone" of AI Chips Nittobo's core competitiveness stems from its T-Glass material, launched in 1984. Simply put, T-Glass is a high-performance glass fiber cloth, characterized by its high strength and minimal expansion under heat. Initially used in composite materials, it was later found to be particularly suitable for the electronics field—AI servers and high-end smartphone chip packaging substrates all rely on it. Chips generate heat during operation, and ordinary materials are prone to deformation and warping, while T-Glass effectively solves this problem, ensuring high-speed computing and long-term stable operation of chips, making it a key material for high-end chip packaging.
III. Market Monopoly: The "Hidden Hegemon" of High-End Global Glass Fiber Cloth In the high-end glass fiber cloth sector, Nittobo holds a near-monopoly. With only a handful of manufacturers worldwide capable of producing high-end NE glass fiber yarn, Nittobo alone controls 90% of the global high-end glass fiber cloth market share. Especially T-Glass, specifically designed for high-end ABF substrates, is unmatched by Nittobauer in this field. With the explosive growth in demand for AI servers, T-Glass is in short supply, even causing a shortage in BT substrates used in mobile phone chips. Goldman Sachs predicts a double-digit percentage shortage of T-Glass for BT substrates in the coming quarters.
IV. Industry Impact: The "Pricing Power Controller" Behind the Price Hike As an industry leader, Nittobauer's moves directly impact the global supply chain. In June 2025, Nittobauer announced a 20% price increase for glass fiber starting in August, triggering a chain reaction across the industry. This is driven by the explosive growth in AI demand—a single AI server requires 5-8 times more high-end glass fiber cloth than a regular server, while overseas manufacturers like Nittobauer have adopted a conservative approach to capacity expansion, leading to supply shortages. Currently, global demand for low-dielectric electronic cloth continues to rise, and Nittobauer's production capacity and pricing strategy directly affect the costs and supply cycles of downstream industries such as PCB and chip packaging.
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