Intel is making big moves in the semiconductor industry, particularly in advanced packaging solutions. With the increasing demand for technologies like EMIB and CoWoS driven by AI giants, Intel is now looking to bolster its production capabilities. To meet this demand, the company has decided to outsource some of its production to Amkor’s facilities in South Korea, marking a significant step in their strategy.
Intel’s New Outsourcing Strategy
The need for advanced packaging solutions has surged, largely due to NVIDIA’s ‘co-design’ requirements. This increase in demand has put pressure on the supply chain, which has traditionally been dominated by TSMC with its CoWoS technology. Now, Intel is stepping up its game with EMIB and Foveros offerings. Reports suggest that Intel’s decision to partner with Amkor in South Korea highlights the high demand for its packaging services. Though Intel has facilities in the US to handle some of this demand, outsourcing helps accelerate production without the need for significant new investments.
EMIB is set to be a key revenue driver for Intel’s foundry services even before the launch of their 14A process. This move is backed by interest from significant players in the tech industry, including MediaTek, Google, Qualcomm, and Tesla. As these companies seek alternatives to TSMC’s constrained capacity, Intel’s offerings provide a viable option.
Implications for the Tech Industry
Intel’s packaging services are becoming increasingly appealing as TSMC struggles to meet the influx of orders from AI industry leaders. Many companies developing ASICs and custom silicon are now considering Intel Foundry as a strong alternative. Furthermore, the logistical challenges faced by companies like NVIDIA, who currently have to ship wafers from Arizona to Taiwan for packaging, highlight the benefits of Intel’s domestic services. This shift could reduce costs and time associated with bringing products to market.
The future looks promising for Intel Foundry, as optimism grows around its innovative packaging solutions. The industry will be watching closely to see how Intel capitalizes on this opportunity and evolves its services to capture a larger market share.