A new chip shortage is emerging due to a scarcity of glass cloth, a key material for high-speed chip substrates, with companies like Nvidia buying up most of the supply and major chipmakers facing production bottlenecks and rising prices expected to last into 2026. Meanwhile, tech industry news includes Apple and Google partnering on AI, legal action against OnePlus’s CEO in Taiwan, and various product launches and policy updates across the electronics sector.
This week’s tech news highlights a new AI-driven chip shortage, primarily caused by a scarcity of a specialty material called glass cloth (or Talas). This material is crucial as a substrate for mounting chips onto PCBs, especially for high-speed data transmission. Apple pioneered its use, but companies like Nvidia have now bought up most of the supply, creating a significant bottleneck for the electronics and AI industries projected to last into 2026. The main supplier, a Japanese company called AGC (not “Indobbo”), is hesitant to expand production rapidly due to fears of another boom-and-bust cycle like the one seen during COVID. As a result, major chipmakers such as Apple, Qualcomm, and AMD are struggling to secure enough material, which could lead to higher prices and shortages across all types of chips.
In related semiconductor news, Apple is reportedly competing with Nvidia for TSMC’s manufacturing capacity, further straining the supply chain. Memory chip prices are also expected to double or even triple by the end of the year, according to Counterpoint, which will likely drive up costs for a wide range of electronic devices. The host notes that these shortages and price hikes could soon affect nearly every type of consumer tech product.
Another major story involves Taiwan issuing an arrest warrant for Pete Lau, the CEO of OnePlus, and indicting two Taiwanese citizens for allegedly helping OnePlus illegally recruit over 70 employees in Taiwan. This move is part of Taiwan’s broader crackdown on Chinese firms poaching high-tech talent, particularly in sensitive sectors like semiconductors. While extradition is unlikely, the legal action could complicate OnePlus’s international business operations.
On the AI front, Google and Apple announced that the next generation of Apple’s foundation models will be based on Google’s Gemini models and cloud technology, meaning parts of Siri and Apple Intelligence will soon be powered by Gemini. Google also launched Gemini with “personal intelligence,” allowing it to pull data from across a user’s Google services for more complex queries. The host points out that companies like Apple and Google have a competitive advantage in AI due to their access to vast amounts of user data, making it difficult for competitors like OpenAI to keep up. However, users must opt in to this new feature, and Google has made privacy commitments.
Other notable releases and updates include Insta360’s new Pro webcams with significantly improved low-light performance, Spigen’s retro-style iPhone case, and the Honor Magic 8 Pro Air smartphone (currently China-only). Bandcamp announced a ban on music generated wholly or substantially by AI, while YouTube introduced new parental controls, including the ability to turn off Shorts for kids’ accounts. Apple launched a Creator Studio subscription for its creative apps, Civilization 7 is coming to iOS, and Samsung’s Internet Browser is now widely available on Windows. Global PC sales rose 10% last year, likely due to Windows 11 upgrades and preemptive buying before memory price hikes. Microsoft outlined a five-step plan to address community concerns about AI data centers, Dacia dropped the price of its Spring EV to €11,900, and Tesla opened North America’s first major lithium refinery, boosting domestic battery supply. The video ends with a sponsored segment promoting Brilliant’s interactive courses on circuits and digital technology.