Intel is negotiating with Alphabet's Google and Amazon to provide advanced chip packaging services through its Foundry division, according to sources familiar with the matter. The talks center on Intel's EMIB and EMIB-T technologies, which promise greater power efficiency and cost savings over TSMC's prevailing methods.

The move signals Intel's aggressive play for AI-era semiconductor dominance. Advanced packaging - combining multiple chips into unified processing units - has become critical as demand surges for high-performance computing. Intel's New Mexico facility is already preparing for mass production of EMIB-T, with capital expenditure plans likely revealing customer commitments later this year.

Market reaction remained cautious. Intel shares held near $20 as industry watchers debated whether tech giants would risk antagonizing TSMC, which currently dominates chip fabrication. Some potential clients reportedly fear retaliatory cuts to wafer allocations should they defect to Intel's emerging foundry ecosystem.