TSMC is developing an advanced chip packaging technology internally known as EMIB-like. The company is partnering with Taiwan's Kinsus Interconnect Technology on the project. This initiative aims to compete directly with Intel's Embedded Multi-die Interconnect Bridge.
TSMC shares in Taiwan rose by the 9.98% daily limit following the report. The company's US-listed ADRs surged 7.64% on the news.
The strategic move targets the high performance requirements of next-generation AI chips. TSMC aims to prevent key customers from shifting to Intel for advanced packaging. Current demand for TSMC's CoWoS technology has created a significant bottleneck in the AI supply chain.