At Splunk .conf26, Intel CEO Lip‑Bu Tan warned that the global advanced chip supply chain's heavy reliance on a single foundry poses significant risk, and called for more players in advanced process and packaging. He also revealed that Intel's CPU supply currently meets only about half of customer demand amid surging AI inference needs.

Tan emphasized that foundry competitiveness goes beyond process nodes – yield control, defect management, cycle time, and line stability are critical, alongside IP, EDA tools, and advanced packaging. He noted that 95% of capacity concentrated in one company, especially in Taiwan, represents a major industry risk.

Intel is advancing its 14A process and expanding advanced packaging to win external customers. In June, Intel brought in former SK Hynix CEO Seok‑Hee Lee to lead advanced packaging and back‑end technology in its foundry division.

Tan highlighted Intel's EMIB (Embedded Multi‑die Interconnect Bridge) technology – using silicon bridges for multi‑chiplet interconnect – as its answer to TSMC's CoWoS.

On CPU demand: AI is shifting from training to inference, where CPUs handle GPU scheduling, application management, and system coordination – keeping CPU demand elevated. Executives are directly approaching Intel for more supply, but capacity cannot fulfill all orders yet.

ICgoodFind Takeaway:
AI inference is driving CPU demand – and Intel is supply‑constrained. Meanwhile, advanced packaging is becoming the new foundry battleground. Buyers should track capacity shifts and packaging technology roadmaps as supply diversification becomes a strategic priority.