TSMC ADR Surges Over 7% on Reports of Developing Intel-like EMIB Advanced Packaging

According to The Information, TSMC (TSM-US)(2330-TW) is developing a new advanced chip packaging technology similar to the solution Intel (INTC-US) uses to attract new foundry customers.

TSMC currently packages high-end AI chips using its CoWoS (Chip-on-Wafer-on-Substrate) technology. CoWoS is currently the most mainstream form of advanced packaging, adopted by tech giants such as NVIDIA (NVDA-US) and AMD (AMD-US) for their AI chips.

Intel, however, has developed an alternative technology called EMIB (Embedded Multi-die Interconnect Bridge), which embeds tiny silicon bridges to connect multiple chiplets within a single package.

As packaging becomes a bottleneck in advanced semiconductor manufacturing, Intel is positioning EMIB as an alternative to TSMC’s CoWoS. This approach enables chipmakers to more easily build larger, more complex chips with greater component integration. NVIDIA is reportedly evaluating whether to adopt EMIB in its upcoming processors.

Intel explains, 'Part of the semiconductor advanced packaging process includes a technology called EMIB, which uses tiny silicon bridges to connect specialized chips within the same package.'

'This allows different chips to operate like a single component, delivering the massive computing power required for AI while improving efficiency and reducing manufacturing costs.'

Intel further notes, 'Other foundries may use expensive silicon interposers as interconnect layers between chips, but Intel Foundry embeds small, high-speed silicon bridges precisely where needed.'

'It's like a data expressway—significantly lowering costs and transforming this 'silicon mosaic' of small chips into a powerful core for AI computing.'

Citing insiders, the report states that TSMC is currently developing its own 'EMIB-like' packaging technology in collaboration with Taiwan-based KinXu Technology (3189-TW).

Additionally, Intel recently signed a cooperation agreement with Chinese tech firm Lens Technology on advanced semiconductor packaging.

Following the news, Intel's stock surged 11% on Thursday, while TSMC's ADR also rose over 7%.