Intel’s chip packaging draws big tech as TSMC hits capacity limits

As demand for advanced AI chip packaging continues to outstrip supply, Intel ↗ 1.69% is positioning its EMIB-T technology as a viable alternative to TSMC's Taiwan Semiconductor Manufacturing Company Limited ↘ 0.83% dominant CoWoS platform — and major chip designers are taking notice.

MediaTek CEO Rick Tsai confirmed during the company's recent earnings call that MediaTek will use Intel's EMIB-T advanced packaging alongside TSMC's CoWoS for its AI application-specific integrated circuit program, marking the first time the company officially disclosed its work with Intel on packaging. Broadcom ↘ 1.13% and Meta ↗ 6.55% are also reportedly evaluating EMIB-T, while Google Alphabet Inc. ↘ 2.09% and Nvidia ↘ 0.91% have shown interest in the technology, according to industry sources cited by Chosun Biz.chosun+1

A Packaging Bottleneck Opens a Door

TSMC's CoWoS technology has become essential infrastructure for modern AI accelerators, connecting powerful compute dies with high-bandwidth memory stacks through silicon interposers. But capacity remains a bottleneck even as TSMC aggressively expands production. Monthly CoWoS capacity is projected to reach 120,000 to 130,000 wafer starts by the end of 2026, up from just 13,000 at the end of 2023, yet lines remain heavily booked, with Nvidia alone estimated to hold roughly 60 percent of CoWoS allocation.siliconanalysts+1

Intel's EMIB approach uses small silicon bridges embedded directly into the substrate rather than a large silicon interposer, which the company says can support packages exceeding nine reticles and sizes up to 120 by 120 millimeters. The newer EMIB-T variant adds through-silicon vias to improve vertical power delivery and signal routing, making it better suited for large AI and HBM-based packages.sammyfans

Broader Industry Diversification

The customer interest extends beyond design houses. SK Hynix is reportedly considering using Intel's EMIB-based boards to attach HBM and system semiconductors side by side on a single substrate, a shift for a company that has closely collaborated with TSMC on packaging optimization.chosun

Reports from mid-August indicated that MediaTek's bids for projects including a Google TPU inference chip and Meta's next-generation inference chip are using EMIB-T, while Broadcom's bid for Amazon's Trainium 4 also relies on the technology.min

Intel expects its advanced packaging business, led by EMIB-T, to ramp from the second half of 2027 and become a more substantial revenue contributor thereafter. The supply-demand gap for CoWoS is expected to narrow from around 20 percent to about 10 percent by the end of 2026, but the persistent tightness has already set in motion a diversification trend that could reshape the packaging landscape for years to come.trendforce+1