Intel’s strategic move into advanced packaging is capturing industry attention as the company opts to outsource production to firms such as Amkor. This decision highlights Intel’s commitment to meeting the ever-growing demand in the tech sector.
Intel’s Strategic Packaging Expansion
The rapid rise in demand for cutting-edge technologies like EMIB and CoWoS, driven by NVIDIA’s ‘co-design’ requirements, is placing pressure on the existing supply chain. Historically, TSMC has led the packaging technology market with its CoWoS solutions. However, Intel Foundry plans to make a significant impact with its EMIB and Foveros technologies. Sources indicate that Intel is now contracting Amkor’s Incheon, South Korea facility for EMIB production, a clear sign of heightened demand for Intel’s packaging capabilities.
Intel’s extensive facilities in the US are capable, but outsourcing to Amkor accelerates production to meet the company’s enormous demand. EMIB is poised to become a major contributor to Intel’s external foundry revenue before the launch of the 14A process. This is underscored by reports of interest from major clients like MediaTek, Google, Qualcomm, and Tesla.
Why Intel is the Preferred Choice
One of the key reasons companies choose Intel’s packaging services is the limited capacity of TSMC’s CoWoS, which is overwhelmed by orders from AI industry leaders. Therefore, firms developing ASICs and custom silicon view Intel Foundry as a viable alternative. Additionally, companies like NVIDIA face logistical challenges, such as sending Arizona-made wafers to Taiwan for packaging, incurring extra costs and delays. Intel’s entry into the market offers US-based semiconductor and packaging services, cutting down on overhead and time.
The evolution of Intel Foundry will be intriguing to watch, especially with the reported high expectations surrounding its packaging solutions.