AMD Likely to Tap Intel Foundry for AI Chips

Analysts expect AMD to partner with Intel for cost-effective packaging as TSMC capacity limits drive shifts in the AI hardware market.

UBS analysts expect AMD to strike a foundry deal with Intel as TSMC faces ongoing capacity constraints. Intel plans to offer its EMIB-T packaging in bulk by 2027, featuring Through-Silicon Vias drilled through silicon bridges to reduce costs significantly.

Intel's EMIB-T solution is roughly 50 percent cheaper than TSMC's CoWoS, with package yields approaching 90 percent despite current 50 percent substrate yields. Major firms including Google, Apple, and SpaceX are also expected to adopt this new technology.

Goldman Sachs predicts AMD will ship 5,000 data center racks in 2026, growing to 15,000 by 2028. To bolster its AI roadmap, AMD has partnered with Cerebras for its Wafer-Scale Engine and acquired Taalas to utilize specialized, model-specific silicon designs.


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