Intel Corp. (INTC, Financials), the semiconductor company expanding into contract manufacturing and advanced packaging, may be moving closer to a major agreement involving Google's custom artificial intelligence chips.
MediaTek said Intel's Embedded Multi-die Interconnect Bridge packaging technology has reached a very good level, providing a fresh signal that manufacturing yields are improving.
Wedbush analyst Matt Bryson said the comments appear to strengthen earlier speculation that Google's tensor processing units could use Intel's EMIB technology. He added that MediaTek's remarks further validate Intel's progress in advanced packaging.
A deal would be significant for Intel's foundry ambitions, which depend on attracting large external customers and proving that its manufacturing technology can support demanding AI workloads.
MediaTek also raised its target for the share of AI application-specific integrated circuits it expects to capture in 2027 to between 15% and 20%, up from 10% to 15%.
Intel recently disclosed that cybersecurity company Fortinet became the first outside customer for its foundry unit.
Investors will next watch for formal confirmation of a Google relationship and additional external customers for Intel's packaging platform.