TSMC Explores Intel-Inspired Packaging Tech Amid High Demand

Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly developing a new chip packaging technology that draws inspiration from Intel's Embedded Multi-die Interconnect Bridge (EMIB) technology. This strategic move, detailed in a report by The Information, suggests TSMC is seeking to diversify its packaging solutions amidst overwhelming demand for its current offerings.

The company is collaborating with Taiwanese substrate manufacturer Kingboard on this project, internally referred to as "EMIB-like" technology. This development is particularly significant given that TSMC's leading CoWoS packaging technology is already sold out through 2027. The extended wait times are reportedly pushing some major clients, including Google, Amazon, and Nvidia, to explore alternative suppliers. Intel's EMIB technology offers a more streamlined approach compared to TSMC's CoWoS, potentially reducing costs and suiting the design of increasingly complex AI chips.

Intel's latest EMIB-T version boasts a 98% yield rate, matching TSMC's CoWoS. This advancement has garnered attention from major tech players, presenting Intel with a potential opportunity to regain ground in the semiconductor manufacturing sector. The report suggests that if large clients adopt Intel's EMIB, they might also extend their support to Intel's chip manufacturing business, a more lucrative area for the company. Intel's foundry business has seen slow recovery, with external client revenue remaining minimal.

TSMC's initiative to explore new packaging methods indicates an acknowledgment of the competitive landscape and the growing importance of packaging technology in the AI chip race. While TSMC maintains its overall leading position, this development underscores the intense competition and the strategic importance of innovation in chip packaging. The company's collaboration with Kingboard may aim to reduce production costs for its packaging solutions, rather than solely mimicking competitors.