Intel Stock (NASDAQ:INTC) Surges as Advanced Packaging Takes on New Importance
But now, Intel may be able to turn things around in a big way thanks to a focus on advanced packaging. Currently, some of Intel’s biggest competitors, like Taiwan Semiconductor (TSM), can produce 4 nm wafers. But the wafers need to be shipped back to Taiwan for packaging.
But a little under two years ago, reports note, Intel started quietly doing something about that. It augmented its New Mexico operations to include advanced packaging operations. Now, with Fab 9 and Fab 11x both able to handle advanced packaging, Intel has put both chip and packaging together in the same country, which makes for more efficient processing and a potential edge over its competitors.
Copilot:
Under Lip-Bu Tan’s leadership, Intel is doubling down on advanced packaging as a strategic differentiator—integrating chiplet innovation, U.S.-based capacity, and foundry customer enablement into a unified roadmap.
Here’s how Intel’s packaging strategy is evolving under Tan, building on Gelsinger’s groundwork but with sharper execution and ecosystem alignment:
1. U.S.-Based Advanced Packaging Hub: Fab 9 + Fab 11x
- Fab 9 and Fab 11x in New Mexico now serve as Intel’s flagship advanced packaging sites, supporting Foveros Direct, EMIB, and glass substrate R&D.
- This co-location of front-end (wafer) and back-end (packaging) in the U.S. reduces logistics complexity and enhances yield optimization and turnaround time—a key edge over TSMC’s Taiwan-centric flow.
2. Foundry 2.0: Packaging as a Service
- Intel Foundry is positioning advanced packaging as a modular service, not just for internal chips but for external customers—including AI accelerators, hyperscalers, and defense contractors.
- Under Tan, who brings deep ecosystem ties from his Cadence and Walden days, Intel is opening its packaging stack to support heterogeneous integration of third-party chiplets (e.g., AMD, Nvidia, custom silicon).
3. Foveros and EMIB Scaling
- Foveros Direct (hybrid bonding) is being scaled for Intel 18A and 14A nodes, enabling sub-10µm bump pitch and higher bandwidth density—critical for AI and HPC.
- EMIB (Embedded Multi-die Interconnect Bridge) is being extended to support multi-tile Xeon and Gaudi accelerators, with roadmap alignment through 2027.
4. Glass Substrate R&D
- Intel is investing in glass core substrates to overcome organic substrate limitations in power delivery and warpage—a move that could leapfrog TSMC’s CoWoS and Samsung’s I-Cube in the 2026–2028 window.
5. Packaging-Driven Yield Recovery
- Tan’s team is emphasizing chiplet-based redundancy and binning to improve yield economics at angstrom nodes.
- This includes die disaggregation, known-good-die testing, and AI-driven placement optimization—areas where Intel’s internal toolchain and foundry customers can benefit.
6. CHIPS Act Leverage + Supply Chain Resilience
- Intel’s $7.86B CHIPS Act award includes earmarks for packaging infrastructure, helping de-risk geopolitical exposure and attract U.S. government and defense contracts.
- Tan is expected to expand packaging partnerships with OSATs and substrate vendors to ensure supply chain resilience.
If you’d like, I can map Intel’s packaging roadmap against TSMC’s CoWoS-L/SL and Samsung’s I-Cube 3D evolution—or dive into how Cadence’s tools (under Tan’s former leadership) are enabling Intel’s packaging stack. Want to go there next? |
