Intel and SK hynix Rally on Rumoured EMIB Packaging Tie-Up for HBM Chips

Intel and SK hynix both saw their share prices jump after a Korean report claimed the two chip giants are working together on advanced packaging tech for high-bandwidth memory, or HBM.

According to ZDNet Korea, SK hynix is doing R&D with Intel around 2.5D packaging using Intel’s Embedded Multi-die Interconnect Bridge, better known as EMIB. The goal is reportedly to connect HBM with logic semiconductors more efficiently. The report also says SK hynix is checking the materials and components needed if this eventually moves toward production.

Important bit first: neither Intel nor SK hynix has officially confirmed the partnership. So for now, this is still in rumour territory. But the market clearly liked the idea.

SK hynix shares reportedly hit an all-time intraday high of $1,320, or 1,946,000 Korean Won, on the Korea Exchange, climbing as much as 14.5% and pushing the company’s market cap past $900 billion. Intel also rose nearly 14% at the time of the original report, with its stock up 229% over six months and 91% over the previous month.

Why EMIB matters

HBM is one of the most important parts of today’s AI hardware race. It is the memory used in high-end AI accelerators, and demand has gone completely gila because every hyperscaler wants more chips for training and inference.

The tricky part is not just making the memory. It is packaging everything together. Advanced AI chips need memory and logic dies placed extremely close to each other so data can move quickly without wasting too much power.

TSMC’s CoWoS packaging has become the default route for many top AI chips, especially Nvidia’s. But CoWoS capacity has been heavily booked for more than two years. Nvidia is expected to take around 60% of global CoWoS demand this year, while Broadcom and AMD together are expected to take another 26%. That leaves less room for smaller AI chip players or companies building custom silicon.

That is where Intel’s EMIB becomes interesting. Instead of using a large silicon interposer like CoWoS, EMIB uses small silicon bridges embedded inside the package substrate to connect multiple dies. In simple terms, it is another way to build powerful multi-chip packages, potentially with lower package cost and fewer thermal headaches for certain designs.

Intel has also been pushing EMIB-T, a next-gen version that adds through-silicon vias for better HBM4 support and higher bandwidth. Intel expects EMIB-T to start production fab rollout this year.

The Malaysia and SEA angle

For Malaysian gamers, PC builders, and tech fans, this sounds like deep semiconductor nerd stuff — but it does matter.

AI demand is already affecting the wider hardware market. When data centres swallow up memory, packaging capacity, and leading-edge chips, the effects can trickle down into GPU availability, workstation pricing, cloud gaming infrastructure, and even future gaming laptop designs. Malaysia and Singapore are also becoming bigger data centre markets, so anything that expands AI chip supply chains could eventually affect regional cloud services and enterprise hardware deployments.

Do not expect this to suddenly make gaming GPUs cheap next month. That one confirm too optimistic. But if Intel can offer a real alternative to TSMC’s crowded CoWoS pipeline, it could reduce bottlenecks for companies making AI accelerators and custom chips. More packaging options usually means more flexibility across the industry.

Intel has already said some customer designs originally planned for CoWoS have been moved to EMIB or Foveros. Separate reports also claimed Google and Amazon have shown interest in Intel Foundry’s advanced packaging.

SK hynix is not relying only on Intel either. The company has started work on a $3.87 billion advanced packaging plant in West Lafayette, Indiana, expected to begin operations in 2028. It also approved a ₩19 trillion, or around $12.9 billion, packaging and test facility in Cheongju, South Korea.

If the Intel-SK hynix EMIB work becomes real, SK hynix would gain another route for packaging HBM beyond its own facilities and its existing reliance on TSMC CoWoS. For Intel, a major memory partner would be a strong signal that its foundry comeback story has real legs.

For now, it is still unconfirmed. But in the AI chip race, packaging is becoming just as important as the silicon itself — and this is one rumour worth watching.

Source: Tom's Hardware