Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly developing an advanced packaging technology, which could erode Intel Corp.‘s (NASDAQ:INTEL) competitive advantage.
Intel’s stock is trading 4.62% higher in Friday’s pre-market trading session, while TSMC stock is trading 3.69% higher.
TSMC is reportedly developing a chip packaging technology similar to Intel’s Embedded Multi-die Interconnect Bridge (EMIB), internally called “EMIB Like,” and is partnering with Taiwan’s Kinsus Interconnect Technology on the project, according to The Information on Thursday.
The report also said Nvidia Corp. (NASDAQ:NVDA) is evaluating Intel’s EMIB packaging technology for a future processor.
TSMC, Intel and Nvidia did not immediately respond to Benzinga’s request for comments.
AI Chip Packaging Battle Grows
Intel has positioned EMIB as an advanced packaging technology that uses silicon bridges to connect multiple chip components, enabling larger, more complex processors while improving efficiency and reducing manufacturing costs.
Meanwhile, TSMC currently uses its advanced CoWoS (Chip-on-Wafer-on-Substrate) packaging technology to produce AI chips for major customers, including Nvidia and Advanced Micro Devices Inc. (NASDAQ:AMD). In April, TSMC announced plans to expand its CoWoS advanced packaging technology with a 14-reticle package, slated for production in 2028, capable of integrating approximately 10 large compute dies and 20 HBM stacks.
If TSMC launches an EMIB-like packaging technology, it could pose a threat to the key factor that gave Intel Foundry an edge. The report also comes days after Intel announced a strategic partnership with China’s Lens Technology to develop glass substrate-based advanced semiconductor packaging for future AI and data center chips.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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