Intel said it is starting to show visible results in its foundry business for external customers. CEO Lip-Bu Tan said customer interest is rising and he expects agreements with multiple customers in the second half of this year. He said Intel’s manufacturing competitiveness is improving, pointing to progress in its 18A process and yield gains. Intel is also discussing its 14A process as a longer-term basis to compete with TSMC.

The semiconductor industry is shifting its technology race from shrinking process nodes to packaging as scaling approaches physical limits. Companies are increasingly relying on 2.5D and 3D stacking and chiplets to meet performance, power and bandwidth demands, driving changes across the value chain that includes IP, libraries and EDA tools. Memory makers SK hynix and Samsung Electronics are advancing their packaging technologies. Intel has also demonstrated GaN-on-silicon chiplet technology and integration with silicon digital control circuits.