Intel’s Strategic Shift: Outsourcing to Address Rising Demands

It appears that Intel’s fortunes are set to improve soon, albeit not in the area initially anticipated. Industry interest in its EMIB packaging technology is reportedly so high that Intel has already arranged to outsource part of the production.

Specifically, Amkor will manufacture the products for Intel at its South Korean facility. Intel has sufficient capacity in the US to meet its own needs, but given the enormous demand, outsourcing production to companies like Amkor significantly accelerates the process instead of investing in building its own factory.

Intel is losing its processor market, but it can profit from a new direction. Google’s interest in Intel’s EMIB packaging for their TPUs underscores a pivotal shift toward advanced tech collaborations. Although details remain sparse, it is expected that EMIB technology will become a primary revenue source for Intel from outsourced semiconductor productions at least until the 14A process emerges. EMIB has also piqued the interest of companies like Google, Qualcomm, and Nvidia, among others.