On July 30, The Information reported, citing sources, that TSMC (TSM.N) is in the process of developing a cutting-edge chip packaging technology akin to that already employed by Intel (INTC.O). Amid the soaring demand for AI, chip design firms are compelled to incorporate an increasing number of processors and high-bandwidth memory modules into larger, more intricate packages. Consequently, advanced packaging technology has emerged as a pivotal bottleneck within the industry.

Intel has pioneered a packaging solution known as Embedded Multi-chip Interconnect Bridge (EMIB). This innovation facilitates high-speed interconnections between processors and memory via miniature silicon bridges, thereby accommodating expansive multi-chip architectures. Such technology not only paves the way for the creation of more potent AI chips but also empowers chip designers to diversify their supply chains, thereby enticing prospective clients like NVIDIA (NVDA.O).

TSMC's in-house engineers have dubbed this advanced packaging endeavor as "EMIB-like" and have engaged in discussions regarding this solution with select customers.