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What percentage of Intel’s packaging is done in the U.S.? I assume only a small percentage, with most of it occurring in Malaysia.
Investors today seem to believe there are no tariffs risk on Intel. With the possibility of tariffs in the future, Intel and TSMC may build their packaging facilities in the U.S.
Good question. I know Intel has been focused on packaging in the US as part of the IDM 2.0 strategy that Pat put into place with Foveros and EMBID. In addition to a packaging facility in Chandler AZ, Intel has packaging in New Mexico which is being expanded.
In regards to Tariffs on semiconductors, will it be just the chips or all parts of the semiconductor manufacturing process that cross the US border? How will TSMC be taxed? At the wafer level? Then we get taxed again at the chip level? I'm sure the clever people in the semiconductor supply chain will play hot potato to keep tariffed products out of the US if possible? So only chips sold to American consumers get tariffed? It is a bit confusing to us folks in the trenches.
Again, I think it is a bargaining position and will not actually happen, but I would like to get a better understanding how tarrifs will work for the semiconductor industry.
Early Monday, Trump said he spoke with Mexico's president, Claudia Sheinbaum, and that he would delay tariffs on the country by a month. He also spoke with Canadian Prime Minister Justin Trudeau but did not announce any changes on Canada tariffs."
Intel does very little to no packaging in the US. Some of they advances FOVEROS is done here.
The tariff challenge is ( Broken record: Tariffs are BAD for everyone... ALWAYS) :
Intel chips even if fab'd in US are packaged out of US, then the package is put on a motherboard outside the US. then the motherboard is put in a system outside the US. If its a Datacenter product, its easy.... I just put it in the datacenter outside the US and no tariff. Make Canada/Ireland great again.
Country of Origin is often used for tariffs but it is based on latest "transformation" typically in semis. In Cars it has been modified to % of parts sometimes. Then based on the rules you do really wierd shipping and sourcing to get the % barely to pass requirements.
Its a fun game. I have played it many times and can review some of the wild cards played. Then they put free trade zones in a country to pretend they are not in the country ..... more games. trade war fun. Change the game rules every year and find a new way to circumvent the rules.
What percentage of Intel’s packaging is done in the U.S.? I assume only a small percentage, with most of it occurring in Malaysia.
Investors today seem to believe there are no tariffs risk on Intel. With the possibility of tariffs in the future, Intel and TSMC may build their packaging facilities in the U.S.
Packaging at intel is kind of weird to classify, since much of what an OSAT would call "advanced packaging" like bumping or organic packages with multiple dies is called "traditional packaging" by intel. What OSATs would call traditional packaging is spread out between Malaysia, China, Vietnam, and Costa Rica with technology development in Arizona. Die prep, wafer sort, bumping, etc. (which intel calls traditional packaging but is part of the advanced packaging TAM for OSATs) is co-located at wafer fab complexes (See Aloha, Fab 8, Fab 10, etc.). Then what Intel calls advanced packaging (2.5/3D packaging and EMIB/Foveros wafer/die fabrication) for the time being only happens in Oregon, Arizona, and New Mexico.
