Intel has long been looking to kick start its foundry business after initially gaining traction with major companies like Google, Amazon and Nvidia. The company’s investment in advanced packaging technologies may finally bring that business to fruition.
According to a report in Wired, Google and Amazon are in advanced talks with Intel on its advanced packaging foundry services for custom AI chips. These chips will likely be used in hyperscaler data centers where Google uses its TPU accelerators and Amazon uses its custom Trainium and Inferentia accelerators.
These deals could bring billions of dollars per year in revenue from packaging alone, the report said.
"Even more so than the silicon itself, chip packaging is going to transform how this AI revolution comes to fruition over the next decade,” said Naga Chandrasekaran, foundry head at Intel said in the Wired article.
Intel has been developing its proprietary advanced packaging since 2017 with the introduction of Embedded Multi-Die Interconnect Bridge (EMIB) and later with Foveros in 2019. At Intel Direct Connect 2025, the company said it was working on packaging offerings for its 18 A and lower process nodes with its EMIB-T iteration. EMIB-T provides denser connections, better power efficiency and lower costs, Intel said.
Everything a growing data center needs.
The EMIB-T variant would support its Foveros Direct 3D with hybrid bonding interconnects. Intel said it would allow the company to stack dies vertically on top of its state-of-the-art semiconductor manufacturing technology.
Intel already uses the packages for its own products and others. These new design wins could provide higher margins and faster revenue returns compared to full-wafer deals.
There could be a future where Intel packaging becomes a main part of its core business as advanced packaging becomes more important for future hyperscale AI ecosystems.
