Intel's Packaging Progress May Unlock Google AI Chip Deal

Intel Corp. may be closer to a major agreement with Google for custom AI chips, as MediaTek indicated Intel's EMIB packaging technology has reached a very good level, signaling improved manufacturing yields. Wedbush analyst Matt Bryson said the comments strengthen earlier speculation that Google's tensor processing units could use Intel's EMIB technology, validating Intel's progress in advanced packaging. A deal would be significant for Intel's foundry ambitions, which depend on attracting large external customers. MediaTek also raised its 2027 target for AI application-specific integrated circuits to 15-20% from 10-15%. Intel recently disclosed Fortinet as its first outside foundry customer, with investors awaiting formal confirmation of a Google relationship.