Intel announced on 19th June 2025 that it has recruited Lee Seok-hee, the former chief executive of SK Hynix, to spearhead an effort to separate its advanced packaging operations into a standalone business unit.
Lee is a prominent figure in the global semiconductor industry, credited with driving SK Hynix's rise to prominence in HBM (high-bandwidth memory) — the specialised chip architecture that has become essential to powering artificial-intelligence workloads. Intel intends to leverage his expertise to sharpen the competitiveness of its own packaging capabilities.
The move is part of a broader restructuring of Intel's foundry business. By carving out advanced packaging as a distinct unit, the company is seeking to give each division a clearer strategic focus and a sharper competitive identity.
Advanced packaging — the technology that integrates multiple chips into a single, tightly connected module — has become a battleground in the semiconductor industry as demand for AI processors surges. Leading fabless chipmakers, including Nvidia and AMD, have been racing to secure access to cutting-edge packaging technology, underlining its growing strategic value across the supply chain.
Intel's decision to separate its foundry and packaging businesses signals a deliberate effort to compete more effectively on two distinct fronts, rather than managing them as a single, unwieldy operation.