Intel Restarts Rio Rancho Fab, Builds Advanced Packaging Business with Google, Amazon

Intel has restarted its dormant Fab 9 in Rio Rancho after 17 years.

“Advanced packaging has quietly become the make-or-break factor in the AI race”

24/7 Wall St.

The site received $500 million from the US CHIPS Act as part of a multi-billion dollar investment.

24/7 Wall St.

Packaging involves combining multiple chiplets onto a single custom chip.

CFO Dave Zinsner said the company expects to see revenue from packaging come in before wafer revenue.

Intel is negotiating advanced packaging deals with Google and Amazon to provide services for their custom AI processors.

These deals could represent a major influx of external revenue for Intel Foundry.

Ars Technica

Packaging technology centers on EMIB and Foveros.

EMIB-T adds through-silicon vias and is set to roll out this year.

Intel's advanced packaging push emerges as hyperscalers face capacity constraints at TSMC.

“REALTIME NEWS Home Tech Semiconductors Intel challenges TSMC CoWoS as Amazon, Google reportedly explore alternatives Levi Li, DIGITIMES Asia, Taipei Apr 7, 2026, 16:09 [](https://www”

digitimes

Intel is scaling capacity across the US, Malaysia, and China.

Packaging operates as the most profitable section of Foundry with approximately 40% gross margin.

Packaging revenue projections have grown from hundreds of millions to well over $1 billion for 2026.

Margins compare favorably with Intel’s core business.

Technetbook

Challenges include scaling capacity and managing environmental factors.