The ongoing mad dash for AI GPUs and ASICs is now producing a tangible impact on the broader silicon supply chain, to the extent of creating a prolonged shortage for a key component that is used to manufacture smartphone SoCs.
Knowledge Base:
- A substrate serves as the base on which Integrated Circuits (ICs) and other components are placed, while also playing a critical role in heat dissipation.
- T-glass, on the other hand, is a special fiberglass with a high silica content that is often used within the substrate for microchips, providing a myriad of benefits, including better thermal stability, a flatter surface for intricate wiring, and higher reliability.
Goldman Sachs: T-Glass Supply Faces A "Double-Digit Percentage" Shortage Over The Coming Months And Quarters
Goldman Sachs has now published a critical industry research report, noting that the high demand for Ajinomoto Build-up Film (ABF) substrates has cornered most T-glass supply right now.
As a refresher, ABF substrates are typically used in AI GPUs and ASICs, and consist of layered films on top of a copper foil, allowing for the creation of intricate, high-density circuit patterns, which leads to higher pin counts and better performance. These substrates also provide excellent electrical insulation and mechanical strength.
The prevailing situation means that there is currently not enough T-glass supply to fulfill the demand for Bismaleimide Triazine (BT) substrates, which typically consist of BT resin and a fiberglass (T-glass) reinforcement, and are often used within smartphone SoCs.
In fact, according to Goldman Sachs, the T-glass supply for BT substrates could face a "double-digit percentage shortage" over the next several months to quarters. This constitutes a worrying development for the broader smartphone market, especially at a time when the industry is gearing up for a vibrant 2026.
Consider the fact that Apple alone is expected to ship 250 million smartphones next year, courtesy of six new iPhone variants, including one in a foldable form factor.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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