Key facts
- Intel appointed Seok-Hee Lee to lead its advanced packaging division.
- Lee will oversee packaging, system integration, and back-end manufacturing.
- The appointment follows President Trump's announcement of an Apple-Intel chip partnership in the U.S.
- Apple will partner with Intel for chip design and manufacturing in the U.S.
- Intel's foundry business aims to revitalize its manufacturing operations.
- Advanced packaging is crucial for improving chip performance by integrating multiple chips.
Intel has appointed semiconductor industry veteran Seok-Hee Lee as executive vice president of its contract chip-manufacturing division, signaling a sharpened focus on its advanced packaging business. This move follows President Donald Trump's announcement that Apple has agreed to partner with Intel for chip design and manufacturing within the U.S., a development aimed at diversifying Apple's supply chain and bolstering Intel's foundry operations.
Lee, who previously served as CEO of SK On and SK Hynix, will report directly to Intel CEO Lip-Bu Tan and will lead all aspects of advanced packaging, system integration, and back-end technology development and manufacturing. Naga Chandrasekaran, currently EVP of Intel Foundry, will shift his focus to front-end technology development and manufacturing, accelerating the ramp of Intel's 18A and 14A technologies.
Intel has been working to revitalize its manufacturing business, including hiring Samsung foundry veteran Shawn Han in April and securing Tesla as an early customer for its next-generation 14A manufacturing process, which is slated for mass production in 2029. Advanced packaging is becoming increasingly critical as chipmakers integrate multiple chips into single packages to enhance performance.
The broader market saw gains, with the Philadelphia SE Semiconductor index hitting a record high, up 6.3%. Intel shares rose 9.3% on the news of the Apple partnership, while Nvidia, Micron, and Marvell Technology also saw significant increases. The market rebound was also attributed to optimism over a Middle East peace deal, which helped offset concerns about potential Federal Reserve rate hikes.