Intel is expanding its advanced packaging capabilities by teaming up with Amkor Technology. This strategic partnership aims to increase production capacity for Intel’s EMIB (Embedded Multi-die Interconnect Bridge) technology, a crucial component for high-performance computing, particularly in the rapidly growing artificial intelligence sector. The move signals Intel’s commitment to meeting the escalating demand for sophisticated chip packaging solutions.
Key Takeaways
- Intel is outsourcing EMIB production to Amkor’s facility in South Korea.
- This collaboration is driven by the immense demand from AI companies.
- Intel Foundry aims to provide an alternative to TSMC’s constrained CoWoS capacity.
Addressing the AI Chip Packaging Crunch
The demand for advanced packaging technologies like EMIB and TSMC’s CoWoS has surged due to the explosive growth of the AI industry. With NVIDIA’s ‘co-design’ strategies and the increasing complexity of AI accelerators, the supply chain is struggling to keep pace. Intel Foundry, with its EMIB and Foveros solutions, is positioning itself as a key player in this market.
Outsourcing for Scalability
To meet this unprecedented demand, Intel is outsourcing the production of its EMIB technology to Amkor’s facility in Incheon, South Korea. While Intel possesses sufficient manufacturing capacity in the US, outsourcing significantly accelerates the production process compared to building new fabrication plants. This strategy is expected to bolster Intel’s external foundry revenue, especially as it prepares for the launch of its 14A process.
A Competitive Alternative
Several major tech companies, including MediaTek, Google, Qualcomm, and Tesla, have reportedly shown interest in Intel’s packaging services. A primary driver for this interest is the current capacity constraints faced by TSMC’s CoWoS technology. Furthermore, Intel’s offering provides a more streamlined solution for companies looking for integrated semiconductor and advanced packaging services, potentially reducing costs and lead times compared to existing supply chains where components might need to be shipped across continents for packaging.
Future Outlook for Intel Foundry
The collaboration with Amkor is a significant step for Intel Foundry, highlighting the division’s growing importance and the market’s optimism surrounding its advanced packaging products. As the demand for AI-driven silicon continues to rise, Intel’s ability to offer scalable and advanced packaging solutions will be critical to its success in the foundry market.
Sources
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
