Intel's Advanced Packaging for NVIDIA: Q2 Update

In recent market developments, there is noteworthy news that Intel Foundry Services (IFS) is poised to provide cutting-edge packaging capabilities to NVIDIA, potentially contributing to production as early as the second quarter of this year. This collaboration is expected to play a pivotal role in expediting the supply chain for AI chips.

NVIDIA's primary partners for advanced packaging capabilities include Taiwan Semiconductor Manufacturing Company (TSMC) and various outsourced testing and packaging collaborators in both the front-end and back-end segments. Projections from industry insiders suggest that TSMC's CoWoS (Chip-on-Wafer-on-Substrate) total capacity will surpass 120,000 units in 2023, doubling to an impressive 240,000 units in 2024. Within this capacity expansion, NVIDIA is forecasted to secure approximately 144,000 to 150,000 units.

Intel, in its recent strategic move towards advanced packaging, has announced the successful large-scale production of industry-leading semiconductor packaging solutions. This includes the groundbreaking 3D Foveros advanced packaging technology. The operational commencement of Intel's Fab 9 facility in Rio Rancho, New Mexico, represents a $3.5 billion investment, focusing on leveraging Foveros 3D packaging technology for chip processing. This facility stands as one of Intel's initial factories dedicated to advanced packaging technology.

To meet the growing demands of the market, Intel has outlined plans to quadruple the capacity of its Foveros 3D advanced packaging by 2025.