TL;DR
Intel has appointed Seok-Hee Lee, former SK hynix CEO, as executive vice president of Intel Foundry to lead advanced packaging and back-end manufacturing. This move aims to strengthen Intel’s position in high-volume packaging and system integration for AI and other high-performance chips.
Intel has appointed Seok-Hee Lee, the former CEO of SK hynix and SK On, as executive vice president of Intel Foundry, giving him control over advanced packaging, system integration, and back-end technology development. This move reflects Intel’s strategic focus on strengthening its high-volume packaging capabilities and system integration for AI and other high-performance applications.
Seok-Hee Lee, who previously led SK hynix and SK On, reports directly to CEO Lip-Bu Tan. His appointment comes with a structural change at Intel Foundry, which is now splitting advanced packaging into a dedicated business unit. Naga Chandrasekaran will focus solely on front-end process development for Intel’s 18A and 14A nodes.
Lee’s extensive experience in high-scale manufacturing and complex system integration is seen as a key asset for Intel’s ambitions in advanced packaging technologies. Intel aims to ramp up its EMIB-T and HBM4-class bandwidth packaging, competing with TSMC’s CoWoS and targeting major clients like Google and Amazon. The company also sees packaging revenue as a significant growth area, with potential gross margins near 40% and commitments from hyperscalers reaching into the billions.
Lee’s return to the industry follows his resignation from SK On in late May, citing health reasons, only to re-enter the semiconductor sector shortly thereafter. His hiring signals Intel’s focus on overcoming previous yield challenges in its back-end processes, which have hampered its high-volume manufacturing efforts, especially in high-bandwidth memory and system-in-package solutions.
Strategic Shift in Intel’s Back-End Focus
This appointment indicates Intel’s intention to bolster its capabilities in high-volume advanced packaging and system integration, essential for competing in AI accelerators and high-performance computing. By bringing in a veteran like Lee, Intel aims to address yield issues, improve manufacturing efficiency, and expand its packaging revenue streams, which could significantly impact its market share and profitability in the foundry segment.
high-performance system-in-package (SiP) modules
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Intel’s Packaging Strategy and Industry Competition
Intel has been investing heavily in process technology, with its 18A and 14A nodes representing its latest front-end process advancements. However, its back-end packaging has faced yield and capacity challenges, limiting its ability to meet high-volume demand for advanced packages like HBM and EMIB. The company’s foundry division reported a $10.3 billion loss in 2025, highlighting the need for strategic changes. The hiring of Lee, a leader with a proven track record in high-scale manufacturing, aligns with Intel’s goal to improve its packaging technology and compete with TSMC and Samsung in high-performance and AI chip markets.
“Lee’s deep expertise in high-scale manufacturing and complex system integration will be critical for Intel’s ambitions in advanced packaging.”
— an anonymous researcher
advanced packaging for AI chips
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Unclear Impact on Intel’s Manufacturing Yields
It is not yet confirmed how quickly Lee will be able to address Intel’s yield issues in back-end processes or how this will translate into operational improvements. Details on specific timelines or immediate results remain undisclosed, and the full extent of his influence on the company’s manufacturing performance is still developing.
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Next Steps in Packaging Technology Development
Intel is expected to ramp production of EMIB-T and HBM4 packages in its fabs this year, with further investments in high-volume manufacturing. The company will likely announce new client partnerships and provide updates on yield improvements and capacity expansion in upcoming quarterly reports. Lee’s leadership will be closely watched to assess the impact on Intel’s back-end manufacturing capabilities and market competitiveness.
EMIB technology packages
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Key Questions
What does Seok-Hee Lee’s appointment mean for Intel’s packaging technology?
It signals a strategic focus on advancing high-volume packaging solutions like EMIB-T and HBM4, aiming to improve yields and compete more effectively in AI and high-performance markets.
How might this impact Intel’s financial performance?
If successful, improved packaging yields and capacity could boost revenue from back-end services, which Intel estimates could exceed $1 billion with gross margins near 40%.
When will we see tangible results from Lee’s leadership?
It is unclear; production ramp-ups are expected to begin this year, but yield improvements and operational efficiencies may take longer to materialize.
Does this move indicate a shift away from front-end process development?
No, Intel continues to invest in front-end node development, with Naga Chandrasekaran focusing on process nodes like 18A and 14A. Lee’s role is specifically in back-end packaging and system integration.
What challenges does Intel still face in its foundry business?
Major challenges include yield issues in back-end processes, capacity constraints, and competition from TSMC and Samsung. Overcoming these will be critical for profitability and market share growth.
Source: Tom’s Hardware: For The Hardcore PC Enthusiast
