Fanning Intel’s comeback ambitions amid a shifting AI supply chain, could Google’s reported multi-million deal reshape competition in advanced semiconductor manufacturing?
Google has reportedly agreed to have Intel manufacture more than three million of its tensor processing units (TPUs) in 2028, a move that could strengthen Intel’s contract chipmaking business as it seeks to expand its position in the artificial intelligence (AI) supply chain.
According to a report by The Information, which cited people familiar with the discussions, the order pertains to Google’s in-house AI accelerators, which are increasingly used as an alternative to NVIDIA’s graphics processing units (GPUs). The report could not be verified independently.
The report also stated that NVIDIA is assessing whether Intel’s manufacturing technology could be used to produce a processor that combines four graphics chips into a single package. However, NVIDIA has not yet placed an order with Intel.
News of the reported Google agreement lifted Intel shares by more than nine per cent in early trading. The company’s stock has already posted strong gains this year amid indications of progress in its turnaround strategy under chief executive Lip-Bu Tan.
The potential deal would provide a boost to Intel Foundry, the company’s contract manufacturing division, as it works to challenge the dominance of Taiwan-based semiconductor manufacturer TSMC. Growing demand for AI chips has placed pressure on global manufacturing capacity, encouraging chip designers to seek additional production partners.
Industry analysts said the development reflects broader efforts by major technology companies to diversify semiconductor supply chains that remain heavily dependent on TSMC. They also noted that working with Intel aligns with efforts to strengthen US-based manufacturing capabilities.
Intel has recently secured support from investors and customers as part of its recovery strategy. Reports in recent months have linked the company to manufacturing agreements involving firms including Tesla and Apple.
For Google, expanding deployment of its proprietary TPUs is part of a wider strategy to reduce reliance on NVIDIA hardware while supporting growth in its cloud computing business.
