Intel Engages Amazon and Google in Advanced Chip Packaging Services Negotiations

Deep News04-07

Intel has held ongoing discussions with Amazon and Google regarding the utilization of the chipmaker's advanced packaging services. These talks indicate Intel's efforts to secure external clients for its packaging technology, which is a crucial component of its foundry business. According to a former Intel employee, the company's EMIB and EMIB-T packaging methods are designed to be more energy-efficient and space-saving compared to solutions offered by TSMC.

Artificial intelligence is driving demand for advanced chip packaging. The head of Intel's foundry business, Naga Chandrasekaran, stated that packaging could transform the AI revolution over the next decade. Intel has prepared its Rio Rancho, New Mexico facility for mass production of EMIB-T technology, employing approximately 2,700 workers at the plant.

Some potential customers may hesitate to publicly commit to partnerships with Intel. A former employee suggested that companies might be waiting to see if Intel can execute its fab expansion plans or could be concerned about wafer allocation from TSMC. Chandrasekaran noted that Intel does not discuss its clients, adding that a sudden increase in capital expenditure for Intel's foundry business would signal that new customers have signed agreements.

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