Intel to License Glass Substrate Technology to Boost Adoption and Foundry Business

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Intel pivots to licensing its glass substrate technology to Samsung and Absolics, monetizing innovation while deferring production beyond 2030.

Quick Report

Intel has shifted strategy with its advanced glass substrate technology, moving from in-house production to a licensing model. According to reports from South Korean outlet ETNews and industry analyst TrendForce, Intel is now in discussions with various glass substrate manufacturers, materials suppliers, and equipment providers to license its technology in exchange for royalties. This strategic pivot allows Intel to monetize its innovations while deferring large-scale production, which is not expected until after 2030. Key potential licensees include Samsung Electronics and Absolics (an SKC subsidiary), with the latter already beginning prototype production at its Georgia facility.

Intel Repositions as Technology Licensor for Advanced Packaging

Intel's decision to license its glass substrate technology represents a significant shift in the company's approach to advanced semiconductor packaging. This follows reports from July indicating Intel was retreating from producing glass substrates in-house, preferring instead to source finished solutions from specialized vendors. Rather than abandoning the technology entirely, Intel is repositioning itself as a technology licensor in this space.

The glass substrate market is gaining momentum across the industry. Absolics has already started prototype production at its Georgia plant, which has an annual capacity of 12,000 square meters. The company plans to complete mass production setup by the end of 2025, potentially becoming the first to commercialize the technology at scale.

Meanwhile, Samsung is preparing to adopt glass substrate interposers for advanced chips by 2028 and has established a pilot line at its Sejong facility. Other major industry players including AMD, Broadcom, and Amazon are also exploring this technology for future products.

Glass substrates offer several advantages over traditional organic substrates used in semiconductor packaging:

  1. Superior electrical performance: Glass has better signal integrity and lower signal loss than organic materials, enabling higher bandwidth and faster data transmission.

  2. Enhanced thermal properties: Glass substrates provide improved heat dissipation, which is critical for high-performance computing applications.

  3. Greater dimensional stability: Glass maintains its shape under thermal stress better than organic materials, allowing for finer manufacturing tolerances and higher interconnect density.

  4. Potential for larger substrates: Glass can be manufactured in larger panel sizes, potentially reducing costs through economies of scale.

  5. Better moisture resistance: Glass offers superior protection against environmental factors that can degrade semiconductor performance over time.

These benefits make glass substrates particularly attractive for advanced computing applications, including AI accelerators, high-performance CPUs, and GPUs, where performance and power efficiency are paramount.

Intel's licensing strategy appears to address several business challenges simultaneously:

  1. Monetizing R&D investments: By licensing its glass substrate technology, Intel can generate revenue from its research and development investments even before large-scale production begins.

  2. Accelerating ecosystem development: Licensing the technology to multiple partners could accelerate the maturation of the glass substrate ecosystem, potentially benefiting Intel when it eventually incorporates these advanced packaging solutions into its products.

  3. Focusing on core competencies: This move allows Intel to focus on its semiconductor design and manufacturing operations while letting specialists handle substrate production.

  4. Building foundry relationships: The licensing agreements could strengthen Intel's relationships with potential foundry customers, supporting its broader IDM 2.0 strategy.

Industry analysts view this strategy as similar to approaches previously employed by IBM, where licensing intellectual property created additional revenue streams while advancing broader technology adoption. The success of this approach will depend largely on Intel's ability to negotiate favorable licensing terms and the industry's readiness to adopt glass substrate technology.

Written using GitHub Copilot Claude 3.7 Sonnet in agentic mode instructed to follow current codebase style and conventions for writing articles.

Source(s)

TechPowerUp
TrendForce
ET News