TSMC’s move to develop EMIB-like packaging validates Intel’s approach as advanced chip packaging becomes critical for AI processors.
Taiwan Semiconductor Manufacturing (TSM) is developing packaging technology similar to Intel’s (INTC) EMIB, signaling validation for Intel’s advanced chip assembly methods. The shift comes as demand for AI processors outpaces the industry’s ability to package chiplets and high-bandwidth memory efficiently, creating supply constraints for hyperscalers and AI developers.
Packaging accounts for 10 to 15 percent of TSMC’s $120 billion in revenue. While Intel’s EMIB targets cost-sensitive AI ASICs for cloud providers like Google and AWS, TSMC’s CoWoS remains dominant for high-bandwidth GPU training workloads. TSMC is expanding CoWoS capacity by over 80 percent annually, with rising competition expected to grow the overall packaging market rather than shift market share.
The development underscores the growing importance of advanced packaging in the AI-driven semiconductor industry, where manufacturing bottlenecks have shifted from chip production to assembly and integration.