TSMC’s strained CoWoS advanced-packaging capacity is reportedly pushing part of its backend workload to Intel’s facility in Malaysia, creating an unusual form of cooperation between two semiconductor rivals serving shared major customers. The arrangement reflects a broader bottleneck in which backend packaging capacity is expanding more slowly than frontend advanced-process production. SemiAnalysis Chipbook export data showed about $1.3 billion of HBM shipped to Malaysia, while shipments to Taiwan fell below $3 billion. Industry analysis identified Intel’s Malaysian plant, using EMIB and Foveros packaging flows, as the facility with sufficient throughput to integrate such volumes of HBM. South Korean export data also points to rapidly rising HBM shipments to Malaysia. TSMC Chairman C.C. Wei said at the company’s July earnings call that TSMC focuses on frontend advanced packaging and welcomes additional providers of backend capacity. Intel CEO Lip-Bu Tan said EMIB-T is achieving reliable yields and that Intel is in a unique position to help amid the CoWoS shortage. He also said some customers had prepaid substrate fees because of tight supply. The potential beneficiaries extend across the overlapping supply chain, including substrate maker Unimicron, ASE Technology, Gudeng, Gallant Precision Machining and Scientech. Unimicron has secured customer commitments and is working with two Japanese companies toward mass production of EMIB-T-related applications in 2027. ASE Technology COO Tien Wu said CoWoS and EMIB are complementary, allowing ASE to supply substrates and provide assembly and testing services regardless of the customer’s chosen technology. Intel has also activated its Pelican Project facility in Malaysia and begun EMIB assembly operations at Amkor’s plant in Incheon, South Korea, according to foreign media reports.