While the world's attention is fixed on the AI chip computing power race, a covert supply chain battle has quietly begun at the upstream raw material level. Following the T-glass glass fiber fabric crisis, HVLP4 copper foil is becoming the most critical constraint for mass production of AI servers in the second half of 2026.

NVIDIA is not only short of chips now, but even the basic materials for making PCB boards are almost out of supply. To prevent delays in producing next-generation AI servers, NVIDIA broke industry rules by bypassing middlemen and personally targeting upstream material factories to "lock capacity." In the era of AI surge, computing power may really be stuck by an inconspicuous "copper foil."

| The copper foil notch is widening

As AI servers increasingly demand high-frequency, high-speed signal transmission, traditional copper foil can no longer meet the demand, and the industry is accelerating its shift toward ultra-low profile HVLP4 copper foil. However, the technical barriers for this high-end copper foil are extremely high, and the supply growth rate simply cannot keep up with the explosive demand for AI.

According to market sources, the supply-demand gap for HVLP4 copper foil is expected to reach 1,500 tons by 2026, and by 2027, this figure may further expand to 2,500 tons.

Currently, suppliers with mass production capabilities are few and far between, and the extreme scarcity of production capacity has made high-end copper foil the most sought-after material for AI infrastructure.

| NVIDIA bypasses middlemen, directly "locks in production capacity"

In traditional PCB supply chains, end customers (such as Nvidia) usually source from copper-clad laminate (CCL) manufacturers, making it difficult to directly reach upstream suppliers of fiberglass cloth and copper foil.

But faced with severe supply constraints, NVIDIA changed the game.

NVIDIA is leading its customer base to bypass CCL vendors directly, establish connections with upstream material suppliers, and even promote a "direct consignment model" to secure key capacity more than a year in advance. At the same time, NVIDIA is pressuring cloud service providers like Google, AWS, and Meta to coordinate inventory preparation. This approach of extending supply chain competition to "upstream and upstream" highlights the current scarcity of materials.

| T-glass fiberglass cloth is also extremely tight

Besides copper foil, T-glass fiberglass cloth used in IC substrates is also facing a severe supply crisis. This material, known as "chip armor," is crucial for the dimensional stability of AI chips.

Currently, more than half of the global T-glass production capacity is controlled by Japan's Nittobo, while yield issues from new entrants have led to severe delivery delays.

By 2026, the supply-demand gap for T-glass is expected to exceed 40%, and even by 2027, the gap could still reach as high as 25%. The dual bottlenecks of copper foil and fiberglass cloth mean that the tightness in the AI server supply chain cannot be eased in the short term.

Jingtai Perspective | Finding "water sellers" to control the pricing power of upstream materials

The expansion of AI infrastructure has already triggered a structural shortage of upstream raw materials. With giants like Nvidia directly entering the market to "grab supplies," the scarcity of high-end materials will be reassessed over the long term.

In the HVLP4 copper foil and T-glass fiberglass fabric fields, there are very few suppliers capable of mass production. In the face of severe supply-demand imbalances, these few suppliers who control core production capacity will have strong bargaining power and profit margins.

Opportunity One: Leading manufacturers controlling core HVLP4 copper foil production capacity

Focus on leading companies that have already achieved mass production of HVLP4 copper foil and possess extremely low profile copper foil technical barriers. Against the backdrop of a widening gap, these companies have extremely high performance certainty.

Opportunity 2: T-glass supplier of fiberglass cloth and high-end copper-clad laminate (CCL).

The shortage of fiberglass fabric will directly drive up the prices of related products. It is recommended to focus on high-end fiberglass fabric production capacity such as T-glass, as well as CCL leaders who can extend upstream and deeply bind with leading clients like Nvidia.

Opportunity Three: The "Breakthrough" Accelerating Domestic Substitution

Facing monopolies and capacity bottlenecks from overseas oligopolies, domestic copper foil and fiberglass fabric companies with strong R&D capabilities are ushering in an excellent window of "domestic substitution." Those domestic material suppliers that can break through technological barriers and enter the supply chains of major companies are expected to achieve a Davis double strike in valuation and performance.

While pursuing AI chip computing power, the fundamental material ecosystem supporting chips is equally crucial. Nvidia is personally buying HVLP4 copper foil, not only to secure its own production capacity but also to reshape its voice in the AI supply chain.