TSMC is expected to keep its lead in advanced chip packaging for AI through 2028, which is good news for TSMC shareholders and a setback for Intel's hopes of grabbing a piece of the AI boom.

• TSMC's CoWoS-L packaging beats Intel's rival EMIB-T technology on maturity and production yields, so it stays the default choice for AI chips.
• Nvidia and AMD already use CoWoS-L for their AI accelerators, and Meta, AWS, and Microsoft are lining up to adopt it for their own custom chips by 2027.
• AI chips are getting bigger and need more memory stacked next to them, and the older CoWoS-S method has hit its physical limits.
• Demand is strong: Nvidia's high-end GPU shipments are expected to grow 30% this year, with Google's TPU and AWS's Trainium chips also ramping up.
• CoWoS-L is expensive and TSMC can't make enough of it, so Google plans to try Intel's EMIB-T in 2027 and AWS is testing it too.

Outlook: Intel will pick up some overflow business, but TSMC's packaging stays the industry standard for AI chips through at least 2028.