Intel is in talks with Google and Amazon on packaging for application-specific integrated circuits (ASICs), Wired reported on April 6, citing sources.

That has drawn attention to whether Google’s TPU and Amazon’s Trainium chips could be produced on Intel’s EMIB-T packaging line.

A deal is expected to be reached in the second half of 2026, and additional details could emerge at an earnings announcement on April 23.

Intel Chief Financial Officer David Zinsner (데이비드 진스너) said customers’ interest was high enough that they were even considering paying upfront payments worth billions of dollars. He said packaging had emerged as the most interesting area in Intel’s foundry business and that gross margins could reach about 40 percent.

Recent market conditions for advanced packaging favour Intel. Wired said demand is emerging for alternatives because TSMC’s advanced packaging capacity is severely limited and concentrated in Taiwan.

Intel is also expanding its manufacturing base. Its advanced packaging facility in Malaysia is scheduled to begin operations in 2026 and will initially focus on assembly and testing. Its Fab 9 and Fab 11X facilities in New Mexico will focus on 3D advanced packaging technologies.

Semiconductor packaging refers to the process or technology that protects chips from external environments and makes it easier to connect them to devices. Packaging protects chips and supports electrical and mechanical connections. It is used in devices ranging from small electronics to large-scale computing systems.