[News] NVIDIA’s Backup Plan? Intel Reportedly Secures Packaging Orders from the AI Giant

As the demand for AI GPUs increases, TSMC’s advanced packaging capacity for CoWoS is struggling to keep up. Recently, according to a report from Commercial Times, NVIDIA has reportedly turned to Intel for advanced packaging solutions.

According to industry sources cited by the same report, TSMC’s CoWoS-S and Intel’s Foveros packaging technologies are similar, allowing clients to turn to Intel and secures the capacity needed quickly.

Despite its current struggling on transformation, Intel has been gradually developing its ‘s foundry services. In addition to clients like Qualcomm and Microsoft, Intel’s advanced packaging has also attracted interest from companies like Cisco and AWS.

Under the IDM 2.0 strategy, Intel has opened up its wafer outsourcing and foundry services to customers, establishing an the independent IFS foundry service. Earlier this year, Intel secured a major USD 15 billon foundry order from Microsoft for the first system-level AI foundry service, which is expected to use the Intel 18A process.

The report from Commercial Times further suggested that Microsoft’s move is anticipated to reduce its heavy reliance on TSMC. The report also indicates that chip customers, including NVIDIA, have engaged with Intel. Intel’s flexible foundry strategy, which can provide advanced packaging, software, and chiplet services tailored to customer needs, has been well-received by chipmakers.

Sources cited by the same report reveal that the U.S. has begun allocating specialized funds to increase investments in the advanced packaging sector as well. This move could highlight the importance of advanced packaging as the next key area for global competition in production capacity.

In November last year, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) released a report titled “National Advanced Packaging Manufacturing Program,” highlighting that advanced packaging technology is one of the key technologies in semiconductor manufacturing.

Additionally, the U.S. Department of Commerce plans to invest approximately USD 3 billion to advance the National Advanced Packaging Manufacturing Program. Intel, alongside Amkor, is another giant in local advanced packaging in the U.S.

The main focus of advanced packaging is on interconnect density, power efficiency, and scaling. From Foveros to hybrid bonding technology, Intel is gradually scaling down bumping pitch sizes, which allows for higher current loads and better thermal performance.

Furthermore, in May last year, Intel’s advanced packaging technology roadmap outlined plans to transition from traditional substrates to more advanced glass substrates.

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(Photo credit: Intel)