[News] Intel’s Advanced Packaging Capacity Tightens, Affecting its AI PC Processor Supply in Q2

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Per a report from TechNews, during Intel’s earnings call last week, CEO Pat Gelsinger stated that the supply of Core Ultra processors in the second quarter is limited due to insufficient wafer-level assembly capacity.

Gelsinger mentioned in the meeting that with the increasing demand for AI PCs and customers continually adding processor orders to Intel due to Windows update cycles, Intel’s AI PC CPU shipments for 2024 are expected to surpass the originally set target of 40 million units. In response, Intel is actively ramping up production to meet customer demand, with the current supply bottleneck primarily concentrated in the backend wafer-level assembly.

Wafer-level assembly is a technology where packaging is done on wafers before they are cut into chips, widely utilized in processors like Meteor Lake and future Core Ultra processors. However, in the face of overwhelming demand, this production bottleneck has led Intel’s Consumer Computing Division to anticipate second-quarter revenue to be roughly equivalent to that of the first quarter, around USD 7.5 billion.

To address this issue, Intel is actively enhancing its wafer-level assembly capacity to meet the growing orders. It is expected that the current tight situation will be alleviated in the second half of 2024, facilitating further revenue growth for the Consumer Computing Division.

As per previous report by Economic Daily News, Intel has advanced packaging capacity in Oregon and New Mexico in the United States and is actively expanding its advanced packaging capabilities in its new facility in Penang. It is noteworthy that Intel once stated its intention to offer customers the option to only use its advanced packaging solutions, expected to provide customers with greater production flexibility.

Read more

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• [News] NVIDIA Expands Advanced Packaging Supply Chain with Intel’s Inclusion, Diverting Orders from TSMC

(Photo credit: Intel)