$Intel(INTC)$ Counterpoint Research is taking a bullish view on Intel's foundry business. Analyst Neil Shah sees Intel's chip-packaging strategy as a potential way to challenge Taiwan Semiconductor in the AI hardware market.
Shah said he expects more than 130 million GPUs and custom AI accelerators to ship with advanced memory packaging over the next five years, generating nearly $2 trillion in computing revenue. His view is that competition is shifting from simply making smaller chips toward finding better ways to connect processors, memory and other components.
That shift matters because AI systems need faster memory access, more computing power and more efficient connections. Shah sees these constraints as creating opportunities for companies to improve how different parts of an AI system work together.
Intel is developing three approaches in this area. EMIB already operates commercially, while Z-Angle Memory, developed with SoftBank Group Corp's SAIMEMORY, targets newer high-speed memory systems. Intel is also developing Cross-Batch Memory as a longer-term approach to redesigning the connection between processors and memory.
Shah sees an opening because Taiwan Semiconductor's widely used CoWoS technology can involve high costs, manufacturing risks, capacity constraints and costly waste when production problems occur.
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