Intel's new advanced packaging complex in Malaysia, part of the $7 billion Project Pelican, is now 99% complete and set for full operations later this year. Malaysian Prime Minister Anwar Ibrahim confirmed a meeting with Intel CEO Tan Lip-Bu to review progress. The first phase will launch assembly and testing capabilities for EMIB and Foveros technologies, critical for Intel's foundry expansion strategy. The facility is designed to handle die sort, prep, and full production flows, aiming to transform Malaysia into a major regional hub for advanced packaging operations. An additional $200 million investment has already been committed to finish the site.

Intel is accelerating its EMIB packaging approach, moving beyond traditional silicon interposers. Unlike NVIDIA's Blackwell, EMIB embeds conductive bridges directly into the substrate, offering a cheaper, more efficient solution for high-density chips. The company plans to scale package size from the current 100 x 100 mm to 120 x 120 mm, supporting up to twelve HBM stacks, and eventually to 120 x 180 mm capable of twenty-four HBM stacks by 2028. Intel has also upgraded EMIB-T to support next-gen HBM4 memory, now entering mass production, a critical development for AI chipmakers demanding higher bandwidth.

While scaling up package size offers benefits, it introduces manufacturing challenges. Larger dies increase warpage risk and yield difficulties during production. Intel's push into Malaysia and advanced packaging represents a strategic bet on the future of chiplet-based designs and AI infrastructure, though overcoming these technical hurdles remains a key focus for the company moving forward.