Intel foundry could gain from TSMC packaging constraints

Taiwan Semiconductor Manufacturing Company Limited, or TSMC, remains the dominant force in semiconductor manufacturing and is central to the AI industry. The company holds over 70% of pure-foundry market share, giving it a leading position as major chip designers rely on advanced manufacturing capacity for high-performance processors.

Intel’s foundry business is also sizeable, but its demand still comes almost entirely from Intel itself. As Intel works to expand external foundry sales, advanced packaging may offer a practical route to compete without directly displacing TSMC’s broader manufacturing leadership.

TSMC’s constraints around CoWoS packaging create a potential opening for Intel Foundry. Intel’s EMIB-T packaging approach could become a key part of its pitch to outside customers seeking advanced packaging capacity for AI chips and other complex semiconductor designs.