The Overlooked AI Compute Bottleneck: Drill Bits
tengyanAI · x · 2026-07-18
An underestimated bottleneck in the current AI industry is the tungsten carbide drill bits used for making holes in AI server PCBs. As circuit board materials become harder and the number of layers increases, drill bits wear out much faster.
Currently, only two companies globally, Topoint and Japan's Union Tool, can achieve the precision required for AI applications. Their capacity utilization has exceeded 90%, and the expected shortage will likely persist until 2026. Topoint has raised prices twice in a single quarter, plans to increase the sales share of its high-end products to 55% by 2026, and has seen its stock price surge by over 130% this year.
Related event: Overlooked AI Hardware Bottleneck: PCB Microdrills(2 posts)→
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