Intel NASDAQ:INTC shares jumped about 12% and Taiwan Semiconductor Manufacturing NYSE:TSM gained nearly 7% on Thursday after a report said TSMC is developing a new advanced chip-packaging technology similar to Intel's approach.
TSMC is working on a packaging method resembling Intel's Embedded Multi-die Interconnect Bridge, or EMIB, technology, The Information reported, citing people familiar with the matter. The company is said to be partnering with Taiwan-based Kinsus Interconnect Technology on the project.
TSMC currently relies on its Chip-on-Wafer-Substrate, or CoWoS, packaging process for advanced artificial intelligence chips used by customers including Nvidia (NVDA) and Advanced Micro Devices (AMD). As demand for AI processors has increased, advanced packaging has emerged as a production constraint across the semiconductor industry.
Intel has promoted EMIB as an alternative to conventional packaging, saying the technology connects multiple chip components with silicon bridges, allowing larger and more complex processors while helping improve efficiency and lower manufacturing costs.
The report also said Nvidia is evaluating EMIB for a future processor. Separately, Intel last week said it entered an agreement with China's Lens Technology to collaborate on advanced semiconductor packaging.