SK Hynix becomes Intel packaging customer for AI memory chips

Intel ↗ 3.61% Foundry has secured SK Hynix ↗ 1.92% as a customer for its Embedded Multi-die Interconnect Bridge (EMIB) advanced packaging technology, marking a milestone in Intel's push to become a major packaging provider for the AI chip industry.

During Hot Chips 2026, SK Hynix confirmed it is working with Intel to integrate its high-bandwidth memory (HBM) into EMIB-based packages, alongside its existing collaborations with TSMC Taiwan Semiconductor Manufacturing Company Limited ↗ 2.95% on CoWoS packaging. The development elevates a relationship that began with testing earlier this year into a formal customer engagement.techpowerup

From Testing to Production

The partnership has been building since May, when reports first surfaced that SK Hynix was testing Intel's EMIB technology for HBM integration. At the time, sources indicated the memory maker was evaluating materials suppliers needed for mass production. By June, LG Innotek was reportedly seeking to enter the substrate supply chain with SK Hynix samples for EMIB, and Intel hired a former SK Hynix executive to lead its advanced packaging division.tomshardware+4

Intel has touted a 90% yield rate on its EMIB technology, and its CFO has indicated that packaging-related annual revenue could reach billions of dollars.reddit+1

TSMC's Yield Challenges Create an Opening

The timing coincides with growing concerns about TSMC's CoWoS packaging capacity. In a report provided to EE Times, Counterpoint Research co-founder Neil Shah said HBM's reliance on TSMC's CoWoS silicon interposers carries "steep costs with thick packages, yield risk, capacity constraints and high scrap costs, thus creating an opening for credible alternatives".eetimes

Shah noted that if the interposer fails during final packaging, "the GPU die and all eight or more attached HBM stacks are ruined," destroying thousands of dollars in silicon. Counterpoint's channel checks also suggest Google Alphabet Inc. ↗ 0.84% and MediaTek will use Intel Foundry's EMIB-T for upcoming tensor processing units.eetimes

Intel's Broader Foundry Ambitions

Analyst Handel Jones of International Business Strategies told EE Times that Intel "has good technology in packaging and is expanding capacity including in Santa Fe, New Mexico". However, TSMC remains the default choice for major GPU makers. "Nvidia ↗ 0.90% and AMD Advanced Micro Devices, Inc. ↗ 5.45% have so far showed no inclination to diversify," Shah said.eetimes

Intel's opportunity hinges on timely execution and continued support from diversification-minded customers like Google and SK Hynix, according to Counterpoint.eetimes