Key facts
- Alphabet's Google has ordered over three million tensor processing units from Intel for manufacturing in 2028.
- Nvidia is evaluating Intel's advanced packaging and 18A process for potential chip production.
- Intel's shares rose more than 9% in early trading following the report.
- The potential order aims to bolster Intel's contract chip manufacturing business amid high AI chip demand.
Alphabet's Google has placed an order with Intel to manufacture over three million tensor processing units in 2028, according to a report by The Information, citing individuals with direct knowledge of the discussions. Nvidia is also reportedly evaluating Intel's advanced packaging and 18A process for its future chip production, potentially combining four graphics chips into a single unit, though it has not yet placed an order.
This news represents a significant development for Intel as it aims to revitalize its contract chip manufacturing business and regain its position in the semiconductor industry. The potential orders signal a diversification strategy for major tech companies seeking alternatives in the semiconductor supply chain amid soaring demand from the AI boom, which has strained capacity at dominant manufacturers like TSMC.
Intel's shares saw a substantial increase in premarket trading following the report. Representatives for Alphabet, Intel, and Nvidia did not immediately respond to requests for comment. The U.S. administration's efforts to bolster domestic manufacturing may also play a role in these decisions.