Intel signals potential return to memory market and foundry partnerships

Intel CEO Lip-Bu Tan has signaled a potential strategic return to the memory business, noting that the rise of AI has transformed memory from a commodity into a critical strategic asset. Tan highlighted interest in new memory architectures and the possibility of 3D stacking memory directly onto CPUs to reduce latency and energy costs. This shift is supported by Intel’s recent recruitment of Seok-Hee Lee, the former CEO of SK Hynix, to lead its foundry and advanced packaging divisions.

Simultaneously, analysts suggest a shifting dynamic in semiconductor manufacturing. UBS reports that AMD may look to Intel Foundry for certain production stages to alleviate capacity pressures at TSMC. Intel’s advanced packaging technology, such as EMIB-T, is cited as a potential cost-effective alternative to TSMC’s CoWoS, with mass production expected by 2027. These developments come as NVIDIA continues to maintain a significant lead in the AI server rack market, with Goldman Sachs projecting a substantial gap in unit shipments between NVIDIA and AMD through 2028.