Nvidia to use Intel for packaging services – report

Business news | February 5, 2024

By Peter Clarke

Electromechanical Packaging Interconnect & cables

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Fabless GPU-for-AI chip supplier Nvidia cannot get enough advanced packaging output from its principal foundry TSMC and is turning to Intel for support, according to a Taiwanese report.

Chinese language newsite United Daily News has reported that Nvidia will add Intel to its supplier list to provide advanced packaging services, with a monthly production capacity of about 5,000 pieces. Intel will begin supplying in 2Q24 at the earliest the report said.

However, Intel’s contribution will only lift Nvidia’s total advanced packaging production capacity by less than 10 percent. So, AI chips are likely to remain supply-constrained. TSMC’s monthly production capacity is expected to be 50,000 pieces up from 40,000 in December 2023.

So-far Nvidia has not used Intel as a foundry for its advanced die and chiplet production but Intel will hope that obtaining Nvidia as packaging customer could open up opportunities in the future.

Factory open

In January 2024 Intel formally opened a factory in Rio Rancho, New Mexico dedicated to manufacturing of advanced semiconductor packaging technologies, including its Foveros 3D packaging technology.

The opening was part of a previously announced US$3.5 billion investment in advanced semiconductor packaging manufacturing. Foveros allows a component to include multiple chips individually optimized for power, performance and cost.

“Today, we celebrate the opening of Intel’s first high-volume semiconductor operations and the only US factory producing the world’s most advanced packaging solutions at scale. This cutting-edge technology sets Intel apart and gives our customers real advantages in performance, form factor and flexibility in design applications, all within a resilient supply chain,” Keyvan Esfarjani, chief global operations officer at Intel, said at the time.