This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) is quietly working to win over Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG) as customers for its advanced chip packaging business.
This is a big piece of Intel’s broader comeback plan. It is not enough to build the technology, the company needs outside customers to actually use it. Intel is pitching its EMIB and EMIB-T packaging as a more efficient and flexible option compared to what rivals like Taiwan Semiconductor (NYSE:TSM) offer, with benefits around power use, space, and potentially lower costs over time. The next version, EMIB-T, is expected to start rolling out this year.
The timing is not random either. AI is putting a spotlight on packaging in a way that did not exist before, with Intel arguing that how chips are put together could matter just as much as the chips themselves. Still, there is some hesitation from customers. Some want to see Intel deliver on its broader manufacturing promises, while others may be wary of how partners like TSM could respond if they shift part of their business.
