Intel’s stock rose around 11 percent on Monday after a report said that Google had contracted with the chipmaker to produce more than 3 million of Google’s custom Tensor Processing Unit AI chips in 2028, in a vote of confidence for Intel’s nascent contract chipmaking business.
Nvidia is also evaluating whether Intel’s manufacturing technology can be used to make a processor that combines four graphics chips into a single unit, although it has not yet placed an order, the report from The Information said, citing unnamed people.
Intel manufacturing worker displays test system-on-chip built on a glass substrate. Image credit: Intel
Supply crunch
While the Google order is not large, it is an indication that chip designers are finding Intel to be a trustworthy alternative to Taiwan’s TSMC, the largest contract chipmaker, as TSMC struggles to meet surging demand.
