TSMC No Longer Has Space, SK Hynix Looks to Intel's EMIB Technology
Intel and SK Hynix
Intel and SK Hynix could strengthen their collaboration in the advanced chip packaging sector for AI. According to various rumors reported by the Korean press, the two companies are engaged in joint research and development activities related to Intel's EMIB (Embedded Multi-die Interconnect Bridge) technology, aiming to integrate HBM memories and logic semiconductors within next-generation 2.5D packages.
The rumors had an immediate impact on the financial markets. SK Hynix's shares saw a sharp rise on the Korean stock exchange, reaching a new historic intraday high, while Intel also benefited from significant stock growth. However, neither company has officially confirmed the existence of an agreement at this time.
The EMIB technology represents one of the primary alternatives to TSMC's CoWoS (Chip-on-Wafer-on-Substrate) platform, which currently dominates advanced packaging for AI accelerators. Unlike TSMC's approach, which uses a large silicon interposer to connect various dies, EMIB employs small silicon bridges integrated directly into the package substrate. This architecture helps reduce costs and thermal complexity while maintaining high-density connections between logic chips and HBM memories.
Intel is also preparing to evolve the technology with EMIB-T, a variant equipped with TSV (Through-Silicon Via) designed to support future HBM4 memories with higher bandwidths. Industrial production of the new solution is expected to commence within the year, at least according to information released by Intel Foundry in recent months.
SK Hynix's interest in EMIB is driven by the increasing pressure on the production capacity of CoWoS. TSMC's advanced packaging lines have been saturated for over two years, partly due to strong demand from the AI sector. NVIDIA is expected to absorb about 60% of the global CoWoS capacity this year alone, while companies like AMD and Broadcom are occupying a significant share of the remaining available volume. This scenario is prompting several ASIC manufacturers and AI accelerators to explore alternative solutions.
SK Hynix produces its own HBM memories in-house and already possesses advanced expertise in hybrid bonding, a technique that allows the stacking of multiple silicon dies using thousands of TSV connections. The company signed an agreement with TSMC in 2024 regarding HBM4 packaging, but clearly, the bottleneck in production lines opens new scenarios.
The Korean company is expanding its industrial presence in advanced packaging. In the United States, a new facility costing about $3.9 billion is under construction in West Lafayette, Indiana, while a multi-billion investment for a new center dedicated to packaging and testing in Cheongju, South Korea, has recently been approved.
Intel, for its part, is looking to expand its Foundry division business by focusing on advanced packaging services. In recent months, the company has stated that it is close to finalizing multi-billion dollar contracts related solely to these technologies.
There is currently no exact timeline for the arrival of the first commercial products based on this potential collaboration, but ongoing research and development activities open the door to possible concrete solutions within 1-2 years. If the project materializes, Intel could carve out a more significant role in the AI market, which is currently almost exclusively dominated by TSMC.