TSMC's packaging monopoly quietly loosens: SK Hynix teams up with Intel to test EMIB technology, AI chip supply chain may see major changes

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The structural tension in the AI chip packaging supply chain is driving the emergence of new technological cooperation models.

According to reports, as TSMC’s CoWoS packaging capacity continues to be in urgent demand, South Korean memory giant SK Hynix has turned to Intel, with the two sides developing R&D cooperation around Intel’s Embedded Multi-die Interconnect Bridge (EMIB) technology.

SK Hynix is evaluating the feasibility of using EMIB technology to interconnect high bandwidth memory (HBM) with logic dies, and has already launched research into supplying the raw materials needed for mass production of EMIB. Meanwhile, Google is also reportedly considering adopting EMIB in its next-generation TPU AI chips, further confirming the technology is drawing broad industry attention.

Since the launch of the AI race at the end of 2022, the bottleneck in packaging capacity has not been fundamentally resolved. Although major manufacturers have expanded production and promoted new technologies, supply remains tight. Against this background, the cooperation between SK Hynix and Intel reflects a trend whereby, due to capacity limitations at TSMC, IC design firms and memory manufacturers are generally seeking alternative solutions.

CoWoS Bottleneck Drives Industry to Seek Alternatives

TSMC’s CoWoS (chip-on-wafer-on-substrate) technology is currently the mainstream 2.5D packaging solution for AI chips, but the ongoing bottleneck in production capacity has become one of the core pain points restricting the AI chip supply chain. Packaging has been one of the earliest supply shortages in the AI competition, and it has not been fundamentally alleviated since the end of 2022.

In this context, Intel’s EMIB technology is gradually attracting industry attention. EMIB falls into the category of 2.5D packaging technologies, connecting the main chip die and packaging substrate with an embedded interposer, and then connecting to the circuit board via the substrate. This technical route highly overlaps with CoWoS in functional positioning, providing a viable option for manufacturers seeking alternatives.

Packaging Yield is the Key Variable for Commercialization

Although the cooperation prospects have drawn attention, whether EMIB technology can be commercialized at scale depends on packaging yield, which remains the core uncertainty. Noted technology analyst Ming-Chi Kuo has issued a warning: Intel’s announced EMIB-T 90% yield refers to verification data, and does not represent the actual yield level in mass production.

Kuo points out that mass production yield will play a decisive role in whether Google decides to adopt EMIB for its next-generation TPU AI chips. This judgment also applies to SK Hynix’s evaluation process—if mass production yields cannot reach economically viable levels, large-scale application of EMIB will face substantial obstacles.

For Intel, how to translate the yield advantage shown in the verification stage into stable mass production capability will directly determine whether it can achieve a breakthrough in the AI packaging supply chain.

Intel Actively Markets EMIB, Seeking New Status in Packaging Market

Intel is conducting active market promotion of EMIB technology.

In the latest quarterly earnings call, Intel CEO Pat Gelsinger emphasized Intel’s differentiated business model, highlighting the company’s ability to quickly integrate customer feedback into its production processes. He stated: "We are not just focused on CPUs; we have advanced packaging and foundry capabilities and can drive innovation more efficiently, meeting customers’ various workload needs with faster speed."

According to reports citing sources, Intel’s vigorous marketing of EMIB, combined with current AI packaging market supply and demand dynamics, is set to promote this technology as a key component of the AI packaging supply chain. Google's and SK Hynix's increasing interest in EMIB signals substantive progress for Intel’s market penetration in advanced packaging, and also opens new revenue streams for the chip giant as it undergoes a strategic transformation.

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