Wedbush: MediaTek's EMIB yield review "fully confirms" Alphabet Inc. Class C CPU orders are being transferred to Intel Corporation (INTC.US) packaging.

Intel Corporation (INTC.US) is reaching a critical turning point with its advanced packaging technology. MediaTek made it clear during its earnings call last week that the yield rate of Intel Corporation's EMIB (Embedded Multi-Die Interconnect Bridge) advanced packaging technology "has reached a very satisfactory level." This statement quickly garnered significant attention from Wall StreetWedbush analysts pointed out that MediaTek's comments "further validate Intel Corporation's progress in the packaging field" and could indicate that Alphabet Inc. Class C (GOOGL.US) is close to placing orders for TPUs. MediaTek "officially announces": Yield rate meets standards, second-generation ASIC to be mass-produced on time in 2028. MediaTek CEO Cai Lixing provided the most definitive positive evaluation of the progress of Intel Corporation's EMIB-T packaging technology during last week's earnings call. He stated that back-end packaging technology is a crucial aspect of complex ASICs, and MediaTek's collaboration with suppliers has delved deep into operational details such as improving substrate yield rates, supply capacity, and production cycle times, managing each aspect individually. Cai acknowledged that there has been good progress in yield rate improvement and technological maturity for EMIB, sufficient to meet the mass production timetable for 2028. MediaTeks CFO Gu Dawei, when asked whether it was necessary to reserve Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS capacity as a backup for the second-generation project, directly statedbased on all the positive data and results obtained for the second project, MediaTek is confident in achieving on-time mass production, and the current EMIB route does not require backup. According to supply chain information, the production yield rate for Intel Corporation's EMIB-T packaging has surpassed 90%, reaching the mass production threshold, with official mass production expected in 2026. In terms of costs, EMIB-T replaces expensive large-area silicon interposers with small-area silicon bridges, reducing packaging costs by more than 40% compared to Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS solutions. Wedbush: MediaTek's comments "completely confirm" speculation about Alphabet Inc. Class C TPU order shift. Wedbush analyst Matt Bryson pointed out in a recent report that MediaTek's statement regarding the yield rate of EMIB carries multiple implications. First, the speculation that Alphabet Inc. Class C's TPU will adopt EMIB has been "completely confirmed." Previously, there had been rumors that the next-generation TPUs from Alphabet Inc. Class C would abandon Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS in favor of Intel Corporation's EMIB-T packaging. As the core ASIC design partner for Alphabet Inc. Class C's TPU, MediaTek's positive assessment of the EMIB yield rate directly validates the feasibility of this technological path. Second, the collaboration between MediaTek and Alphabet Inc. Class C is warming up. Bryson noted that MediaTek's management raised its market share target for AI ASICs in 2027 from 10%-15% to 15%-20%. Based on a serviceable market (SAM) of $80 billion in 2027, this corresponds to potential revenue of $12 billion to $16 billion. The first AI ASIC is expected to enter mass production in the fourth quarter of 2026, expected to contribute $2 billion in revenue. Intel Corporation's Dual Breakthrough in Packaging Business MediaTeks endorsement is not an isolated event. Intel Corporation is simultaneously experiencing dual breakthroughs both technically and commercially in the packaging sector: On the technical front, EMIB-T is Intel Corporation's next-generation 2.5D advanced packaging technology, positioned as a low-cost alternative to Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS. By utilizing silicon vias for vertical power delivery, it eliminates the need for expensive interposers, significantly reducing costs and increasing silicon wafer utilization. Intel Corporation claims that by 2026, it can achieve 8 to 10 times the size of the photomask complex. On the commercial front, Intel Corporation's foundry business (IFS) just announced last month that cybersecurity giant Fortinet, Inc. (FTNT.US) is its first publicly named external foundry customer. If Alphabet Inc. Class C's TPU packaging orders materialize, it will become the most significant external customer collaboration for IFS to date. J.P. Morgan believes that the partnership between Intel Corporation and Alphabet Inc. Class C should be limited to the packaging business rather than foundry servicesTPUs will still be manufactured by Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, with Intel Corporation solely responsible for packaging. Even so, this still marks a significant breakthrough for Intel Corporationadvanced packaging is one of the fastest-growing segments in AI chip manufacturing, while Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS's capacity has long been in short supply. MediaTek's AI ASIC Blueprint: From $2 Billion to $16 Billion MediaTek's AI ASIC business is exhibiting exponential growth: MediaTek is simultaneously adopting a dual-packaging strategy with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR CoWoS and Intel Corporation EMIB-T to meet the design requirements of large AI chips from different customers. Cai Lixing emphasized that the "performance per TCO" and "performance per watt" of the second-generation ASIC will see significant improvements. Citigroup Inc. has a more optimistic projection estimating that its related revenue could reach $18 billion by 2027. Conclusion MediaTek's positive assessment of EMIB yield rates provides Intel Corporation with the highest level of endorsement for its technological path in advanced packaging from a core partner. Wedbush believes this "completely confirms" the speculation that Alphabet Inc. Class C's TPU will adopt Intel Corporation's EMIB. For Intel Corporation, if the TPU packaging orders from Alphabet Inc. Class C are officially finalized, it will be a major victory for its IDM 2.0 transformation strategyproving that it can not only attract external customers (Fortinet) in wafer manufacturing but also compete directly with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR in the fastest-growing advanced packaging segment. For MediaTek, the projected revenue growth curve from $2 billion to $16 billion for AI ASICs is reshaping it from the "king of mobile chips" to "an important player in AI chips."