Intel is accelerating its advanced packaging capabilities with the near completion of a new facility in Malaysia, a key part of the company’s Project Pelican initiative. According to reports from The Edge Malaysia, the $7 billion complex is now 99% complete and is expected to go live later this year. This milestone marks a significant step in Intel’s foundry expansion strategy and its push to lead the development of next-generation chiplet-based designs.

The first phase of the facility will focus on assembly and testing capabilities for advanced packaging, with an emphasis on supporting the company’s EMIB (Embedded Multi-die Interconnect Bridge) and Foveros technologies. These technologies are integral to Intel’s strategy for handling die sorting, preparation, and full production flows for chips with high-density chiplet-based designs. The complex is designed to enhance Intel’s capacity for developing sophisticated semiconductor solutions and increasing its role in the global semiconductor manufacturing landscape.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim confirmed his recent meeting with Intel CEO Tan Lip-Bu and other senior executives to review the progress of the project. Intel has also committed an additional $200 million to finalize the site, underscoring its dedication to making Malaysia a hub for its advanced packaging operations in the region.

Intel continues to advance its EMIB packaging approach, which sets itself apart from traditional silicon interposers used by competitors like NVIDIA. EMIB technology embeds conductive bridges directly into the substrate, offering a more cost-effective, efficient solution that is well-suited to high-density chip designs. This technology is critical as demand for faster, more powerful semiconductors, particularly for AI applications, continues to rise.

The new facility will allow Intel to scale up its packaging solutions, with future goals targeting 120 x 120 mm packages for chips supporting up to twelve HBM (High Bandwidth Memory) stacks, up from eight in current designs. By 2028, Intel plans to produce 120 x 180 mm packages capable of handling twenty-four HBM stacks, further increasing memory bandwidth and integration to meet the demands of next-gen AI chipmakers.

However, scaling up package size brings its own challenges. Increasing the size of the packaging can result in warpage and yield issues during manufacturing, which Intel must overcome to maintain production efficiency. Despite these challenges, the new facility in Malaysia is expected to play a pivotal role in addressing these hurdles while supporting the demand for increasingly complex semiconductor solutions.

This project also emphasizes the growing importance of advanced packaging technologies in the semiconductor industry, as Intel moves to solidify its leadership in next-gen chip production. With the expansion of this advanced packaging complex, Malaysia will become a significant player in the semiconductor value chain, contributing to the development of high-performance chips that power everything from AI-driven applications to consumer electronics.

Intel’s move aligns with the company’s broader strategy to expand its foundry business, providing a critical manufacturing capability for customers who rely on advanced packaging technologies for their chip designs. The launch of the advanced packaging complex later this year will further strengthen Intel’s competitive position in the global semiconductor market.