Intel shares jumped 23.3% after reports in late March and early April 2026 that the chipmaker is in advanced talks with Google and Amazon to provide high-end AI chip packaging using its EMIB and EMIB‑T technologies, with production preparations already under way at its Rio Rancho, New Mexico facility. The developments feed directly into Intel’s push to win hyperscale cloud customers for its foundry and packaging services, a central plank of its turnaround strategy.
EMIB (Embedded Multi‑die Interconnect Bridge) and the newer EMIB‑T are Intel’s multi‑chip packaging technologies that allow high‑bandwidth, low‑latency interconnects between separate dies in a single package — a capability cloud providers prize for AI accelerators where performance per watt and memory bandwidth are critical. Industry watchers say hyperscalers are increasingly looking for alternatives to their current supply chains, and Intel’s move positions it as a potential new partner for integrators seeking close ties between chip design and advanced packaging.
The reports say Intel is preparing production capacity at Rio Rancho, signaling the company is moving beyond proof‑of‑concept discussions toward manufacturing readiness. That preparation is notable because it suggests Intel is confident it can meet the technical and volume demands such customers require — but it also raises the spotlight on Intel’s historical execution issues around ramping new processes and facilities on schedule.
The packaging talks come as Intel recently agreed to repurchase Apollo Global Management’s 49% stake in Fab 34 in Ireland for US$14.2 billion. Fab 34 has been described as central to Intel’s ambitions for AI server and AI PC production; taking full control is intended to ensure capacity and strategic alignment but also increases financial commitments as Intel races to convert long‑term AI demand into profitable utilization of its fabs and packaging lines.
Financial projections tied to Intel’s AI and foundry pivot are wide‑ranging. One bullish scenario cited by investors projects revenue reaching US$61.8 billion and earnings of US$4.0 billion by 2029, translating into a calculated fair value near US$47.11 per share — about a 7% downside to current prices under that analysis. More cautious analysts have modeled a flatter outcome, forecasting roughly US$52 billion in revenue and just US$2.2 billion in earnings by 2028, even before taking the new packaging talks into account.
What is new in these reports is the combination of sizable hyperscaler interest, concrete production preparation at an Intel facility, and the timing alongside the Fab 34 repurchase — together these move the packaging story from theoretical capability toward potential commercial business. The critical next questions remain whether contracts materialize, whether Intel can ramp without repeating past delays, and whether the economics of packaging services will deliver the higher margins Intel needs to justify its heavy capital outlays.