Intel is accelerating its advanced packaging push with a major move in Malaysia. According to reports from The Edge Malaysia, the company's new complex there, part of Project Pelican, is now 99% complete and set for full operations later this year. Malaysian Prime Minister Datuk Seri Anwar Ibrahim confirmed he met with Intel CEO Tan Lip-Bu and executives to review the project progress. The first phase will launch assembly and testing capabilities for advanced packaging, marking a key step in Intel's foundry expansion strategy. The facility is designed to handle die sort, prep, and full production flows across both EMIB (Embedded Multi-die Interconnect Bridge) and Foveros technologies, critical for supporting high-volume chiplet-based designs. As we reported in December last year, Intel values the project at approximately $7 billion and aims to transform Malaysia into a major regional hub for its advanced packaging operations. An additional $200 million investment has already been committed to finish the site.

Intel continues to advance its EMIB packaging approach. Unlike traditional silicon interposers used by NVIDIA in Blackwell, EMIB embeds conductive bridges directly into the substrate. This approach is cheaper, more efficient, and more suited for high-density chips. Intel is now aiming for 120 x 120 mm packages from the current 100 x 100 mm. These larger dies can support up to twelve HBM stacks, compared with eight in current designs. By 2028, Intel plans 120 x 180 mm packages capable of handling twenty-four HBM stacks. The company has also upgraded EMIB-T , its latest version incorporating through-silicon vias (TSV), to support next-gen HBM4 memory, now entering mass production. That is critical as AI chipmakers demand higher bandwidth and tighter integration. However, bigger isn't always easier. Scaling up package size increases warpage risk and yield challenges during manufacturing.