Intel is in talks with Google and Amazon regarding advanced chip packaging services for custom AI processors. These potential agreements could significantly enhance Intel Foundry's external revenue, with Chief Financial Officer Dave Zinsner indicating that pending deals may reach billions of dollars annually.
At the recent Morgan Stanley TMT conference, Zinsner highlighted a shift in revenue expectations, revising projections for packaging services from hundreds of millions to “well north of $1 billion.” This reflects a growing recognition of packaging's importance, as noted by Naga Chandrasekaran, head of Intel Foundry, who emphasized its critical role in AI advancements.
Intel’s advanced packaging capabilities include technologies such as EMIB and Foveros, with the upcoming EMIB-T set to start production this year. Facilities in New Mexico and Malaysia are expanding operations, supported by significant investments, including $500 million from the CHIPS Act. The Penang complex is nearing completion, anticipated to commence assembly and testing later this year.