Two sources with knowledge of the project revealed that Taiwan Semiconductor Manufacturing is developing an advanced chip packaging technology, taking a technical approach similar to a solution already offered by Intel. Chip packaging is the final step in semiconductor manufacturing, where individual silicon dies are assembled into a single unit, wiring is connected to enable various chips to work together, and the chip is linked to the rest of the computer hardware.
Packaging was once viewed as a routine part of semiconductor manufacturing. However, as demand for AI chips has surged, chip designers need to integrate more processors and high-bandwidth memory into larger, more complex packages, turning packaging into one of the industry's most significant production bottlenecks.
Intel has developed its own Embedded Multi-die Interconnect Bridge (EMIB) technology. This technique uses tiny silicon bridges to create high-speed communication channels between processors and memory. Potential clients like Nvidia have shown strong interest in this technology: EMIB can support larger multi-chip architectures, helping to build more powerful AI chips, and also allows chipmakers to diversify their supplier risk. Media reports indicate that Nvidia is evaluating the use of EMIB technology to develop a next-generation processor integrating four graphics chips into a single package.
Sources stated that engineers at Taiwan Semiconductor Manufacturing internally refer to this advanced packaging project as "EMIB-like technology," and the company has already begun discussions with some clients about this solution. Taiwan Semiconductor Manufacturing is jointly developing this technology with Taiwan's Unimicron Technology Corporation. Unimicron specializes in packaging substrates, which serve as the base for chip packaging and also handle signal transmission between the chip and other server hardware. Taiwan Semiconductor Manufacturing declined to comment, and Unimicron did not respond to media inquiries.
During a recent earnings call, Taiwan Semiconductor Manufacturing President C.C. Wei admitted that the company's existing advanced packaging capacity is extremely tight and has already limited client business expansion. This capacity shortage has created a rare opportunity for Intel to attract customers who have long relied heavily on Taiwan Semiconductor Manufacturing. Even if a client initially only transfers packaging business to Intel, such cooperation could help the American company demonstrate its technology, deepen client relationships, and ultimately secure more wafer foundry orders.
This shift in industry momentum is highly symbolic for Intel. For years, Intel has tried to win back high-end clients with the most demanding process requirements. This American chip company once led the global race in advanced chip manufacturing, but suffered multiple delays in mass production, allowing Taiwan Semiconductor Manufacturing to overtake it. As a result, many top chip designers have shifted more of their premium flagship products to Taiwan Semiconductor Manufacturing. Currently, top chips from companies like Nvidia are manufactured by Taiwan Semiconductor Manufacturing.
Meanwhile, Intel is fully investing in its foundry business, aiming to compete directly with Taiwan Semiconductor Manufacturing. In its effort to rebuild its reputation in process manufacturing, advanced packaging has become another path for Intel to attract clients. Reports indicate that after months of validating Intel's EMIB technology, Google has placed an order for Intel to package over 3 million of its self-developed AI processors by 2028.
For Taiwan Semiconductor Manufacturing, this EMIB-like technology is a countermeasure to prevent Intel's packaging advantage from expanding further. Sources said the development is still in its early stages, and the timeline for commercial mass production is not yet certain. However, the move demonstrates that the AI boom is forcing the global wafer giant to expand its packaging technology portfolio 鈥?clients need both more capacity and more integrated packaging solutions for next-generation processors.
Taiwan Semiconductor Manufacturing's Chip-on-Wafer-on-Substrate (CoWoS) technology is the mainstream packaging solution for AI chips from Nvidia and Google. AI processors need to continuously retrieve massive amounts of data from memory, requiring the processor and memory to be placed closely together and connected via high-speed links. Taiwan Semiconductor Manufacturing's CoWoS uses an interposer layer beneath the processor and memory to create high-speed interconnects.
In contrast, Intel's EMIB takes a completely different approach: it embeds tiny silicon bridges within the packaging substrate only at points requiring high-speed communication, rather than placing all components on a single layer. This architecture is better suited for chip designs that are becoming larger and more complex. This means the substrate is a core component of Taiwan Semiconductor Manufacturing's EMIB-like packaging development. Unimicron can assist Taiwan Semiconductor Manufacturing with the design and manufacturing of the substrate, which will support the silicon bridge structure while connecting the various chip components on top.
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