TSMC AI Dominance Not Threatened by Intel Due to ABF Substrate Dependency, Says Citi

A Citi analyst has stated that TSMC's dominance in AI chip packaging is not threatened by Intel. The analyst's view is based on Intel's reliance on ABF substrates for its EMIB-T packaging technology.

Citi analyst explains Intel's ABF substrate reliance

Intel's EMIB-T packaging success depends on the maturity of the ABF substrate ecosystem. According to the analyst, since EMIB depends heavily on ABF substrates, its success will be tied to how developed that ecosystem becomes.

In contrast, TSMC's CoWoS packaging capacity could see significant growth in 2026 and 2027. The analyst attributes this to strong tailwinds from AI demand.

The Citi analyst's report highlights a key raw material dependency that may limit Intel's ability to challenge TSMC in the AI packaging space. TSMC's established CoWoS technology and its capacity expansion plans position it well to meet growing AI chip demand.