Intel is reportedly engaged in ongoing discussions with at least two major clients, including Amazon and Google, regarding cooperation involving its advanced packaging services. The success of Intel's advanced packaging business largely depends on its ability to secure external clients such as these tech giants. A former Intel employee familiar with the company's packaging operations noted that Intel's EMIB and EMIB-T technologies are designed to offer more precise chip packaging compared to solutions from Taiwan Semiconductor Manufacturing Company. This approach is expected to be more energy-efficient, space-saving, and, ideally, help clients reduce costs over the long term. Intel has indicated that EMIB-T will be deployed in its fabs this year.
Artificial intelligence has been a key catalyst driving these developments. According to Naga Chandrasekaran, head of Intel's foundry business, "Advanced packaging has truly come to the forefront because of AI. Even more important than the chip itself, this type of packaging will shape how the AI revolution unfolds over the next decade." Intel has already begun preparations for mass production of EMIB-T at its Rio Rancho facility in New Mexico. The site currently employs approximately 2,700 Intel staff, a reduction of about 200 from the previous year. Reports indicate that workforce reductions have occurred since Pat Gelsinger assumed the role of CEO.
Katie Prouty, plant manager of the Rio Rancho facility, highlighted that a major selling point of Intel’s advanced packaging is the flexibility it offers clients to engage with Intel at any stage of the process—similar to having multiple entry and exit points on a highway. For example, a client could source wafers from another supplier and then bring them to an Intel fab for the next step, or complete traditional packaging with an outsourced semiconductor assembly and test provider before using Intel for advanced packaging. Prouty remarked, "This is not something Intel would have done in the past. We never used to accept wafers from other customers. It represents a major shift in mindset."
An anonymous former Intel employee suggested that potential packaging clients may be cautious about announcing partnerships for two reasons: either they are waiting to see if Intel can deliver on its fab expansion commitments, or they are concerned that TSMC might reduce wafer allocations if they publicly commit to Intel’s packaging services. The former employee emphasized that the risk for clients lies not in the technology itself, but in broader market dynamics.
Naga Chandrasekaran, however, adopted a more reserved stance. He stated, "I believe we need to be very disciplined in adhering to the principle that we do not discuss customers. Successful foundries don’t announce, 'We’ve signed these clients.' We prefer that customers speak about our products." He indicated that a clear signal of client acquisition would be a noticeable increase in capital expenditure within Intel’s foundry business. Chandrasekaran added, "As we sign these customers, we will have to raise capital spending," noting that "the market will see it when it happens."
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