tech
April 7, 2026
Intel is going all-in on advanced chip packaging
Sixteen miles north of Albuquerque, in Rio Rancho, New Mexico, an Intel chip plant sits on more than 200 acres of land. The site was established in the 1980s, part of it built on top of a sod farm. In 2007, as Intel’s business faltered, operations in one of the key fabs, Fab 9, came to a halt. Employees say families of raccoons and a badger took up residence in the space.
TL;DR
- Intel is revitalizing its Rio Rancho, New Mexico, chip plant for advanced packaging, investing billions, including $500 million from the US CHIPS Act.
- Advanced chip packaging combines multiple chiplets onto a single custom chip, a growing business area for Intel's Foundry arm.
- Intel's CEO and CFO have highlighted packaging as a key growth driver, projecting revenues well north of $1 billion.
- The company is competing with Taiwan Semiconductor Manufacturing Corporation (TSMC) in the advanced packaging market.
- Intel is reportedly in discussions with potential customers such as Google and Amazon for its packaging services.
- Intel's packaging innovations include EMIB and Foveros, with EMIB-T promising improved power efficiency and signal integrity.
- The expansion of advanced packaging is seen as crucial for the AI revolution.
- Intel is also expanding its chip-making facilities in Penang, Malaysia, to increase assembly and test capacity.
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