Intel Foundry on Brink of Billion-Dollar Advanced Packaging Wins Amid AI Surge

Intel's Foundry division is poised for a major breakthrough, with CFO David Zinsner announcing that the company is close to securing contracts worth billions of dollars per year in advanced packaging technology. Speaking at the Morgan Stanley Technology, Media and Telecom conference, Zinsner highlighted strong customer engagement for Intel's EMIB and Foveros solutions, which enable multi-die processors critical for complex AI GPU accelerators. These technologies have already proven versatile, combining Intel's in-house silicon with chips from rivals like TSMC.

This development is a lifeline for Intel's Foundry business, which has bled billions quarterly amid execution challenges. Advanced packaging has surged in importance during the AI boom, as accelerators demand fusing multiple compute and memory dies. Intel's investments position it as a key player, potentially driving significant revenue growth and boosting shareholder confidence in the chipmaker's turnaround efforts.

Adding to the momentum, CEO Lip-Bu Tan has shifted stance on the 18A process node, now considering external customer access after initial plans limited it to internal use. Intel's 18A-P variant offers eight percent better performance per watt than TSMC's 2nm, attracting inbound interest. While Foundry won't break even until exiting 2027, Zinsner noted that surging demand could accelerate progress—though it might require extra capacity investments.

Looking ahead, successful deal closures and 18A adoption could solidify Intel's foundry ambitions, challenging TSMC's dominance. However, delivery remains key given past delays, with Panther Lake products already shipping and signaling real-world viability.