How advanced chip packaging became one of Intel's fast-growing businesses; sources: Intel is in talks with Google and Amazon for its advanced packaging services

Intel is making a serious play in advanced chip packaging — and the biggest names in cloud computing are listening. The company is reportedly in active talks with both Google and Amazon to provide its advanced packaging services, according to sources cited by Wired.

Advanced chip packaging has become a critical bottleneck in the AI boom. The technology bundles multiple chip components together into tightly integrated packages, boosting performance in ways that matter enormously for AI workloads. It's quickly become one of Intel's fastest-growing business lines.

The push centers on Intel's facilities roughly sixteen miles north of Albuquerque, New Mexico. Landing contracts with Google and Amazon would be a major validation of Intel's foundry strategy — and a signal that hyperscalers are hungry for packaging capacity beyond the usual suspects.

For Intel, this isn't a side hustle. It's a core bet on the company's future.