TSMC CEO Hints Company Could Back Up Customers If Intel’s Advanced Packaging Ramp-Up Falls Short

• Intel’s EMIB-T and TSMC’s CoWoS are competing approaches to advanced packaging.
• Wei said TSMC is already producing advanced packages at 5x reticle size with “excellent” yields, which has kept customers satisfied.
• Wei added that the company is also working to reduce packaging costs, stating that its CoWoS technology remains customers’ preferred option.

Taiwan Semiconductor Manufacturing (TSM) CEO C.C. Wei hinted during the company’s earnings call that the chipmaker could step in if customers struggle to secure enough advanced-packaging supply from Intel (INTC).

The remarks came after Morgan Stanley analyst Charlie Chan asked whether TSMC would support customers that initially chose Intel’s EMIB-T packaging technology but later faced supply constraints, according to the Koyfin transcript of the company’s third-quarter (Q3) earnings call.

“I try to avoid answering it directly, but let me say that, yes, we will be,” Wei said. “Number one priority I already indicated is that TSMC’s customer’s product can be introduced into the market smoothly. That’s a number one priority. Okay? And that gives you enough of a hint.”

TSM stock fell nearly 4% in morning trade amid broader market weakness as concerns around AI spending and hotter-than-expected producer prices weighed on markets. 

On Stocktwits, retail sentiment behind the chip supplier to companies like Nvidia (NVDA) and Apple (AAPL), improved to ‘extremely bullish’ from ‘bullish’ territory over the past day. Platform data showed a 666% increase in chatter in the same time period.

Intel Vs. TSMC

Intel’s EMIB-T and TSMC’s Chip on Wafer on Substrate (CoWoS) are competing approaches to advanced packaging that connect chip components and high-bandwidth memory into integrated systems used in AI computing. 

A shortage of packaging capacity can delay deliveries even when the underlying chips are available. Should that happen, clients can either delay their launch or switch to a different supplier.

During Intel’s second-quarter (Q2) earnings call in July, CEO Lip-Bu Tan stated that  EMIB-T orders were growing and yield and reliability targets were being met, with the company preparing to scale production to support customers’ 2027 ramps.

INTC stock fell over 5% in morning trade on Thursday. On Stocktwits, retail sentiment around the company continued to trend in ‘bearish’ territory over the past day. 

TSMC Says It Is Advancing Toward Larger Chip Packages

Wei said TSMC is already producing packages five times the standard reticle size, with plans to expand to nine times and eventually 14 times that size. 

“We are in the real-world production of 5x reticle size. I don’t believe that anybody can do that today except at TSMC, and the yield is excellent,” he said. “So our customers are very satisfied with the result.”

Wei added that the company is also working to reduce packaging costs, stating that its CoWoS technology remains customers’ preferred option.

TSMC Q3 Earnings Recap

TSM stock fell in morning trade on Thursday despite reporting a Q3 earnings and revenue beat. Earnings per share (EPS) came in at $0.91, according to Koyfin, beating Wall Street expectations of $0.89 per share. Revenue rose 50% year-over-year to $46.12 billion, beating analysts’ forecast of $45.69 billion. 

This was the company’s sixth consecutive quarter of record earnings. It forecast fourth-quarter (Q4) revenue would rise as much as 61% as compared to a year ago.

TSM stock has gained over 36% this year. It’s currently trading around 14% below its record high of over $487 seen earlier this month.

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