Intel Expands Focus on Advanced Chip Packaging for AI Era

Intel has increased its investment in advanced chip packaging, a key area for supporting AI hardware, by restarting operations at its Fab 9 facility in New Mexico and introducing new packaging technologies.

In January 2024, Intel resumed activity at its previously dormant Fab 9 site in Rio Rancho, New Mexico. The company directed billions of dollars into the facility, with support from a $500 million grant under the U.S. CHIPS Act, to focus on advanced chip packaging capabilities.

Intel’s financial leadership updated the company’s revenue outlook for packaging, moving from earlier estimates in the hundreds of millions to projections well above $1 billion. The CFO also stated that Intel is nearing agreements for packaging contracts valued at several billion dollars annually.

To enhance its packaging offerings, Intel introduced EMIB-T, an improved version of its existing EMIB technology. This new approach is designed to provide better power delivery and signal integrity for chiplet-based designs, which are increasingly used in AI and high-performance computing.

What the numbers show

• Intel’s Fab 9 received a $500 million grant from the U.S. CHIPS Act in 2024
• The global advanced packaging market for AI chips was valued at $3.42 billion in 2025
• Market projections indicate growth to $4.15 billion in 2026 and $9.78 billion by 2034
• Intel’s CFO revised packaging revenue forecasts to exceed $1 billion

Intel has also demonstrated a prototype 78 mm glass substrate using EMIB technology, featuring a 20-layer structure. This development addresses brittleness challenges in large chip packages required for AI applications.

The company’s Foundry ASAT (Advanced System Assembly & Test) division now supports a range of advanced packaging options. These include EMIB 2.5D/3.5D, FCBGA 2D+, and UCIe interconnect standards, which are intended to meet the needs of complex AI chip designs.

Market research attributed to Intel indicates that the value of the global advanced packaging sector for AI chips is expected to increase substantially over the next decade. The sector was valued at $3.42 billion in 2025 and is projected to grow to $9.78 billion by 2034.

Intel’s continued investment in advanced packaging technologies and facilities reflects the company’s strategy to address the technical requirements of AI hardware and to compete in a growing global market for chip assembly and integration.

* This article is based on publicly available information at the time of writing.