An influential analyst recently pushed back hard against market rumors that AMD might use its rival Intel's advanced packaging technology, EMIB-T. The analyst's comment, that CEO Lisa Su would "only use Intel if the world were ending tomorrow," powerfully highlights the deep-rooted partnership between AMD and its primary manufacturing partner, TSMC.
So, why did these rumors start in the first place? The story begins with a major bottleneck in the AI industry. The demand for AI chips has exploded, but production is limited by a key manufacturing step called advanced packaging. For years, TSMC's CoWoS technology has been the gold standard, but they simply can't make enough for everyone. This supply crunch created an opening for competitors.
This is where Intel comes in. Intel has been investing heavily in its own foundry and packaging services, offering its EMIB-T technology as a direct alternative to CoWoS. They've been gaining traction, with reports of major memory makers like SK hynix and cloud giants like Google and Amazon exploring partnerships. This momentum made it plausible to some investors that AMD might consider Intel as a second source to reduce its reliance on a single supplier and secure its production pipeline.
However, the evidence points to AMD staying the course with TSMC for now. First, teardowns of AMD's flagship MI300 AI accelerators show they are built entirely on TSMC's packaging platform. It's a complex and deeply integrated system that can't be swapped out easily. Second, AMD's leadership has consistently and publicly affirmed that TSMC is their strategic partner for the long haul. Shifting a core part of their manufacturing to a direct competitor like Intel would be a monumental and risky decision.
In conclusion, while the idea of AMD diversifying its supply chain is logical, the current reality suggests its bond with TSMC is too strong to break. The speculation appears to be more a reflection of Intel's growing capabilities and the market's anxiety over supply constraints than a signal of an actual shift in AMD's strategy.
- Advanced Packaging (2.5D/3D): A method of connecting multiple chips or components in a single package, either side-by-side (2.5D) or stacked vertically (3D). This allows for much higher performance and efficiency compared to traditional methods.
- CoWoS (Chip on Wafer on Substrate): TSMC's industry-leading advanced packaging technology, essential for building high-performance AI accelerators.
- EMIB-T (Embedded Multi-die Interconnect Bridge with Through-silicon Vias): Intel's advanced packaging technology that competes with TSMC's CoWoS. It uses small silicon bridges to connect chips, offering high bandwidth and power efficiency.