TSMC's CoWoS advanced packaging capacity remains tight, and some back-end orders have reportedly spilled over to Intel's Malaysia plant, where Intel is helping with packaging capacity for shared major customers. According to ChainCatcher, TSMC Chairman C.C. Wei previously said the company is focused on front-end advanced packaging and welcomed more suppliers to add capacity for back-end shortages, offering flexible alternatives for common customers.

The report said the main bottleneck in advanced packaging is that back-end ramp-up is slower than front-end processes, widening the CoWoS capacity gap and forcing orders to move elsewhere. According to ChainCatcher, SemiAnalysis Chipbook data shows about $1.3 billion worth of HBM has already been shipped to Malaysia, and industry analysts said Intel's local plant appears to have developed large-scale HBM integration capability. Intel CEO Lip-Bu Tan said EMIB-T technology is helping ensure reliable yields and that Intel is in a unique position to provide support amid CoWoS shortages. Unimicron, ASE Technology Holding, and Kinsus are also expected to benefit from overlapping supply chains, while Unimicron's shares rose more than 7% on the day. Intel aims to begin mass production of EMIB-T-related applications in 2027.