Embodiments of the present disclosure are directed to integrated circuit (IC) package assemblies with magnetic contacts, as well as corresponding fabrication methods and systems incorporating such magnetic contacts. A first IC substrate may have a first magnet coupled with a first electrical routing feature. A second IC substrate may have a second magnet coupled with a second electrical routing feature. The magnets may be embedded in the IC substrates and/or electrical routing features. The magnets may generate a magnetic field that extends across a gap between the first and second electrical routing features. Electrically conductive magnetic particles may be applied to one or both of the IC substrates to form a magnetic interconnect structure that extends across the gap. In some embodiments, magnetic contacts may be demagnetized by heating the magnets to a corresponding partial demagnetization temperature (PDT) or Curie temperature. Other embodiments may be described and/or claimed.