AI material shortage spreads: NVIDIA steps in to purchase HVLP4 copper foil, gap to reach 1500 tons by 2026

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The demand for AI infrastructure continues to expand, and the high-end PCB supply chain is facing a new round of upstream bottlenecks. After T-glass fiberglass cloth, HVLP4 copper foil is becoming the most critical supply constraint for the second half of 2026. The market expects a shortage of 1,500 tons this year, further widening to 2,500 tons in 2027.

According to industry sources cited by Digitimes Asia, Nvidia and its major customers are once again directly involved in coordinating upstream material supply, to ensure that the mass production and shipment progress of next-generation AI servers are not affected.

Nvidia is providing clearer order visibility to fiberglass cloth and copper foil suppliers, advancing a direct consignment model, locking in key upstream capacity more than a year ahead of time.

This move signals that the AI supply chain rivalry has extended from the chip and substrate levels to the upstream raw material end. The Nvidia-led customer group is bypassing CCL (copper-clad laminate) manufacturers and directly reaching out to fiberglass cloth and copper foil suppliers, trying to resolve bottlenecks before material shortages turn into crises affecting end-product shipments.

HVLP4 copper foil shortage intensifies, gap expected to widen to 2,500 tons in 2027

As mainstream AI servers and high-speed computing platforms rapidly move from HVLP2 and HVLP3 to HVLP4, corresponding copper foil demand is surging. According to market sources cited by Digitimes, HVLP4 copper foil's supply-demand gap is expected to reach 1,500 tons in 2026.

Despite Mitsui Kinzoku and Taiwan's Co-Tech Development actively expanding production, supply growth still can’t catch up with AI demand due to the high technical barriers and expansion difficulty for ultra-low profile copper foil. The gap is expected to further widen to 2,500 tons in 2027.

HVLP4 copper foil is an ultra-low profile copper foil and a key material supporting high-frequency, high-speed signal transmission. As high-end CCL demand evolves from M6 to M7, M8, and even M9 specifications, requirements for copper foil quality are rising, but suppliers capable of mass production are very limited.

Nvidia bypasses CCL manufacturers, directly controls upstream materials

Fiberglass cloth and copper foil suppliers have long been at the "upstream of upstream" in the PCB supply chain. Material development and production planning have traditionally been dominated by CCL manufacturers like Elite Material and Doosan Electronic Materials in Korea, making it difficult for end customers like Apple and Nvidia to directly reach this level.

However, as constraints at the IC substrate and PCB levels persist, the Nvidia-led customer group is changing this situation, directly establishing connections with upstream material suppliers and bringing fiberglass cloth and copper foil into their own supply chain management system. According to industry sources, Nvidia is also exerting greater purchasing pressure on US cloud service providers—including Google, AWS, and Meta.

CCL suppliers have adopted rare quota allocation measures, requiring IC substrate and PCB manufacturers to take delivery based on actual usage, further highlighting the scarcity of upstream materials.

T-glass fiberglass cloth also in crisis, supply-demand gap over 40% in 2026

HVLP4 copper foil is not the only bottleneck. The supply of T-glass fiberglass cloth used for IC substrates is also extremely tight. Japan's Nittobo controls over half of global capacity, and yield issues among new entrants like Taiwan Glass are affecting delivery progress, leading to an estimated supply-demand gap of more than 40% in 2026.

According to Digitimes, even by 2027, the supply-demand gap for T-glass is expected to be as high as 25%, continuing to restrict ABF substrate capacity expansion. In the high-end fiberglass cloth sector, Low DK2 and T-glass are the main shortage items, already triggering active price increases in the supply chain.

For investors, the dual bottleneck in upstream materials means the tight situation in the AI server supply chain will be difficult to ease in the short term. The few suppliers with HVLP4 copper foil and T-glass fiberglass cloth capacity will continue to benefit from the bargaining power brought by supply-demand imbalances.

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