Intel CEO Lip-Bu Tan Might Save Firm’s Glass Substrate Packaging Business Through Samsung Investment
Intel’s packaging business, particularly its advanced glass substrate technology, could get a lifeline as Samsung Chairman Lee Jae-Yong’s ongoing visit to the United States sparks speculation of a major investment. The move would strengthen Intel’s competitive stance against TSMC, whose massive investments in advanced packaging have made it the default choice for AI-driven chip demand.
According to Business Post, Samsung’s interest in Intel stems from the latter’s expertise in hybrid bonding and glass substrates, key technologies in advanced back-end-of-the-line (BEOL) packaging. BEOL processes are critical for modern AI chips, GPUs, and accelerators, which require enormous power handling and highly efficient interconnects to avoid failure.
Intel’s share price recently climbed after the U.S. government announced it would acquire a 10% equity stake in the company. SoftBank has also invested, and Samsung may now join as well, either through a direct equity stake or a joint venture.
Insiders believe Samsung is particularly interested because Intel’s glass substrate packaging is widely regarded as industry-leading. Although rumors suggest Intel may have slowed or even halted new investments in glass substrate R&D due to financial pressures, the firm is reportedly licensing the technology to generate revenue. Adding fuel to speculation, a key Intel glass substrate executive has already joined Samsung, reinforcing the possibility of closer collaboration.
From Samsung’s perspective, the motivation is clear. While it is one of the world’s few high-end chip manufacturers alongside Intel and TSMC, when combining front-end and back-end market share, Samsung actually trails Intel. Moreover, Samsung has struggled against TSMC in contract chipmaking, with lower yields and scaling issues limiting its competitiveness despite offering advanced nodes.
What’s at Stake
A partnership between Intel and Samsung would allow:
Intel to sustain its leadership in packaging without having to divert more resources away from its struggling foundry operations.
Samsung to leverage Intel’s packaging expertise to offset its weaknesses against TSMC in the foundry market.
Both companies to form a stronger counterbalance to TSMC, which dominates contract chipmaking with unmatched volume capacity.
Intel’s new CEO, Lip-Bu Tan, has been pursuing aggressive strategies to stabilize the company’s finances and regain relevance in semiconductors. Securing a Samsung investment would not only provide much-needed capital but could also extend Intel’s technological edge in packaging, a sector that is increasingly critical in the AI hardware race.
Whether this results in a joint venture, licensing partnership, or direct equity stake, the coming months will reveal whether Samsung and Intel truly intend to team up against their common rival.
Would you see an Intel-Samsung partnership as a real challenger to TSMC’s dominance, or do you think TSMC’s lead is simply too large to overcome?
