Apple and Qualcomm Stocks Fall Over Supply Concerns

Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM) shares dropped about 1% on Wednesday morning after reports highlighted potential supply issues linked to a shortage of high-end Japanese glass cloth (14/01).

The specialized material, mainly produced by Japan’s Nitto Boseki, is essential for printed circuit boards and chip substrates used in smartphones and AI servers, according to a Nikkei Asia report.

Shortage Driven by Rising AI Hardware Demand

The surge in artificial-intelligence hardware demand has increased competition for the limited glass cloth supply.

Companies such as Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG), and Advanced Micro Devices (NASDAQ: AMD) are also seeking the same material.

Industry Warns of Potential Production Bottlenecks

Industry sources cited concerns that the combination of limited production capacity and strict quality requirements could create a bottleneck for electronics and AI hardware manufacturing into 2026.

Apple and Qualcomm did not immediately provide comments regarding the supply constraints reported by GuruFocus.

PHOTO: SOPA IMAGES/GETTY IMAGES

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