Prolonged Double-Digit Percentage Shortage of Key Components for Smartphone SoCs

The increasing competition for AI GPUs and ASICs is now significantly impacting the silicon supply chain, leading to a notable shortage of critical components essential for the production of smartphone System on Chips (SoCs).

Stylized illustration of an unbranded microchip with layered components on white background.

Knowledge Base:

A substrate is the foundational layer onto which Integrated Circuits (ICs) and other components are affixed, playing a vital role in heat dissipation.
T-glass is a specialized fiberglass with a high silica content used within substrates to enhance thermal stability, create a smoother surface for complex wiring, and improve overall reliability.

Goldman Sachs Predicts Significant T-Glass Supply Shortage Ahead

In a recent industry research report, Goldman Sachs has highlighted that the soaring demand for Ajinomoto Build-up Film (ABF) substrates is currently monopolizing the available T-glass supply.

ABF substrates, typically utilized in AI GPUs and ASICs, are constructed from multiple films layered over copper foil, which facilitates the development of complex, high-density circuit patterns that enhance pin counts and overall performance. These substrates are known for their exceptional electrical insulation and mechanical durability.

As a result, there is a significant inadequacy in T-glass supply to meet the needs for Bismaleimide Triazine (BT) substrates. BT substrates, which are made from BT resin reinforced with fiberglass (including T-glass), are commonly incorporated within smartphone SoCs.

Goldman Sachs forecasts that the T-glass supply for BT substrates may experience a “double-digit percentage shortage“over the coming months and quarters.

This development poses a significant risk to the smartphone market during a period when the industry is poised for a strong revival in 2026.

For context, Apple is projected to ship around 250 million smartphones next year, buoyed by the release of six new iPhone models, one of which may feature a foldable design.