Intel Accelerates Foundry Revival, Spearheaded by Advanced Packaging

Intel is accelerating the revival of its foundry (contract manufacturing) business through large-scale investment in advanced semiconductor packaging. By expanding infrastructure such as materials, components, and equipment, Intel is significantly scaling up its advanced packaging capacity to strengthen its response to the foundry customers it has recently secured.

According to industry sources on the 28th, Intel is currently placing large-scale purchase orders for materials, components, and equipment from its global supply chain partners. Multiple supply contracts for materials, components, and equipment have reportedly already been signed. Some Korean materials/components/equipment companies are also participating.

An industry official familiar with the matter said, "Advanced packaging facility investment on the scale of several trillion won is underway," adding, "Considering equipment lead times and the timing of materials and component supply, full-scale operation is expected next year." Intel is also discussing cooperation with some partners regarding facility investment in 2028. The investment locations cited as major packaging production hubs include the United States as well as Vietnam and Malaysia.

This investment is said to be focused on expanding capacity for "EMIB (Embedded Multi-die Interconnect Bridge)."

EMIB is Intel's proprietary 2.5D packaging technology that connects different semiconductors (dies). Signals are exchanged between chips via a silicon bridge embedded in the semiconductor substrate, and it is known to offer superior cost and productivity compared to the silicon interposer-based 2.5D packaging led by TSMC. In particular, it enables precise 2.5D packaging by connecting only the necessary areas with bridges.

Intel is advancing EMIB further with technologies such as EMIB-T, which applies through-silicon via (TSV) technology to the bridge, and packaging that integrates glass substrates. The aim is to broaden its customer base by diversifying its packaging technologies. This materials/components/equipment investment also includes numerous new technologies to be applied to next-generation packaging.

This packaging investment is a strategic move to strengthen foundry capabilities. Intel declared its re-entry into the foundry business in 2021 and pursued the development of advanced (front-end) processes, but it has struggled to secure major customers. This was largely due to TSMC's dominance in advanced chip foundry, including AI semiconductors.

The packaging investment is also interpreted as a strategy to strengthen Intel's differentiated capabilities to attract foundry customers. Because the limits of circuit miniaturization mean the entire industry faces constraints in boosting chip performance through front-end processes, Intel is seen as attempting to break through this bottleneck with advanced packaging (back-end) and place its entire foundry business on a stable trajectory.

Intel is also pursuing front-end advancement in parallel to maximize synergy. Last year, Intel brought its "Intel 18A" process—equivalent to the 2-nanometer (㎚) class—into full-scale operation. It has continued facility investment not only for its own chips but also to serve foundry customers.

Another industry official predicted, "This packaging investment is evidence that Intel has secured a certain degree of advanced foundry process customers," and "The 18A process combined with expanded advanced packaging investment could be the starting signal for Intel's foundry revival."

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