[News] Intel Advanced Packaging Reportedly Gains Traction vs. TSMC as Google, Amazon Weigh EMIB Adoption

Intel’s advanced packaging business is reportedly gaining momentum. According to Wccftech, citing WIRED, sources say the company has been in discussions with at least two major customers—Google and Amazon—on packaging services for ASIC development. This suggests both Google’s TPUs and Amazon’s Trainium chips could potentially adopt EMIB-T integration.

As the report further notes, based on Intel’s disclosures, the timeline for securing customer commitments is set for the second half of 2026, with more details potentially emerging at the next earnings call on April 23. Earlier this year, CFO David Zinsner said, as cited by Wccftech, that customers are ready to commit and even willing to “prepay” for capacity, with commitments reportedly reaching into the billions of dollars.

Reflecting this momentum, Intel sees advanced packaging as a key growth driver. According to 24/7 Wall St., Zinsner noted that packaging has become “the more interesting part of the Foundry business today” and could reach gross margins of around 40%.

Wccftech adds that one of the key factors driving customer interest is TSMC’s constrained advanced packaging capacity. The report notes that capacity remains highly limited, creating room for alternatives, with Intel’s EMIB emerging as a competitive option. It also highlights that TSMC’s advanced packaging capacity is largely concentrated in Taiwan, which may further strengthen Intel’s positioning.

Intel Reportedly Scales Global Advanced Packaging Capacity

Intel is also ramping up its advanced packaging footprint. The Edge Malaysia reports that Intel’s advanced packaging complex and assembly operations in Malaysia are slated to come online in 2026, with the initial phase focused on assembly and testing. TechPowerUp also reports that since early 2024, Intel has expanded its New Mexico operations to support greater advanced packaging capacity. The Fab 9 and Fab 11X facilities in Rio Rancho are the first to enter mass production of Intel’s 3D advanced packaging technologies.

Meanwhile,TSMC is continuing to accelerate its U.S. expansion, with advanced packaging capacity also in its plans. According to MoneyDJ, citing sources, site preparation is underway for its planned advanced packaging facility, with construction expected to begin in the second quarter of 2026—about one quarter earlier than previously anticipated by the market. The facility is targeted to begin operations between late 2027 and 2028. It is expected to introduce advanced packaging technologies such as SoIC, CoW, and CoPoS to support local AI and HPC chip packaging demand.

Read more

• [News] Intel Ramps Up Advanced Packaging: Malaysia Complex Operational in 2026, EMIB Update
• [News] Intel’s EMIB Reportedly Gains Traction with AI ASIC, Smartphone Clients, Could Package TSMC Dies

(Photo credit: Intel)