Intel’s advanced packaging business is quickly turning into a serious growth engine, as more chip designers search for alternatives to limited capacity at TSMC. With demand for AI accelerators, high-performance computing, and custom silicon still climbing, advanced packaging has become just as critical as the silicon itself. And right now, the industry is feeling the squeeze: key high-end packaging capacity is tight, and that shortage is pushing major US fabless companies to consider new options.
That’s where Intel’s EMIB and EMIB-T packaging technologies come in. Once viewed mainly as a secondary choice, Intel’s approach is increasingly being treated as a practical, production-ready fallback for companies that can’t secure the packaging slots they need elsewhere. Intel’s own leadership is signaling just how real that demand has become. CFO David Zinsner recently explained that the company originally framed packaging wins as “hundreds of millions” in potential revenue, especially compared to wafer manufacturing deals that can reach the billions. But that thinking has changed. Intel now says it is close to finalizing agreements that could bring in billions of dollars per year, potentially becoming a major revenue contributor heading into the second half of 2026.
Interest in Intel’s packaging capabilities has been building for months, especially after NVIDIA’s CEO Jensen Huang publicly praised Intel’s packaging solutions around the time of a major deal announcement. A big driver behind the momentum is capacity availability. While other advanced packaging options are constrained, Intel’s advanced packaging lines are described as unconstrained, making access to production a key selling point. For fabless chip companies trying to meet launch schedules and customer demand, predictable capacity can matter as much as raw technical specs.
Confidence in Intel’s packaging strategy also appears to be improving across the supply chain. Industry reporting indicates Intel has been working closely with IC substrate suppliers in Japan and Taiwan, and those partners are now ramping capacity in anticipation of rising demand. That’s an important signal, because it suggests interest is shifting from early evaluation to real order volume, the stage where supply chain investments begin to lock in.
EMIB and EMIB-T are being positioned as strong candidates for products that value cost efficiency, large-scale designs, and flexibility more than absolute peak bandwidth. In practical terms, this makes the technology especially appealing for ASICs, mobile processors, and custom silicon programs. Current chatter suggests NVIDIA may consider EMIB for future Feynman chips, while companies like Apple, MediaTek, and Qualcomm are also potential adopters for various custom chip efforts.
Another advantage helping Intel stand out is the domestic manufacturing angle. The US has limited advanced packaging capacity outside of Intel. For companies having wafers made in the US, such as at TSMC’s Arizona site, advanced packaging could still require shipping unfinished chip components overseas for final packaging. Intel’s US-based advanced packaging helps reduce that logistical complexity and supports customers looking to shorten supply chains, improve resilience, or meet internal and government-driven domestic sourcing goals.
Taken together, the picture is clear: advanced packaging is now a frontline battleground in the AI and high-performance computing era, and Intel is positioning EMIB and EMIB-T as scalable, available, and increasingly credible options. If the company lands the billion-dollar annual deals it’s signaling, Intel’s packaging business could become a major pillar of its foundry ambitions as 2026 approaches.
