Intel gains ground on Google and Nvidia in AI chip manufacturing
Intel could receive a major boost from Google for its foundry business. According to The Information, the group has reportedly secured an order for over three million Tensor Processing Units (TPUs) scheduled for production in 2028. The report also indicates that Nvidia is exploring the use of Intel's manufacturing technologies for a future processor integrating four graphics chips, although no formal agreement has been reached yet. This news provided strong tailwinds for Intel shares, which surged by over 12% on Monday.
If confirmed, the Google order would represent a significant milestone in the turnaround strategy led by CEO Lip-Bu Tan. Intel is seeking to revitalize its semiconductor manufacturing business after losing ground to TSMC. Surging demand linked to artificial intelligence and capacity constraints at the Taiwanese foundry are prompting several industry players to diversify their suppliers, offering Intel an opportunity to regain prominence in the global production chain.
The group has already secured several financial and industrial endorsements in recent months, notably from the Trump administration, Nvidia, and SoftBank. Intel has also signed an agreement with Tesla for its future 14A manufacturing process and has reportedly reached a preliminary deal with Apple to produce certain chips. For many analysts, partnering with Intel now serves not only to diversify supply chains but also to bolster semiconductor production on US soil, an objective encouraged by American authorities.
Intel Corporation is the world leading manufacturer of semiconductor. Net sales break down by family of products and services as follows:
- computing architectures products (69.7%): processors and microprocessors (Pentium, Intel Xeon brands, etc.), graphics cards, chips and motherboards, connectivity products, cellular modems, Ethernet controllers, network components, storage products, etc. for PCs, servers, data centers, cloud networks, workstations, notebooks, Internet of Things, graphics architectures, intelligent peripherals and communications infrastructures. The group also develops associated software;
- wafer manufacturing services (25.3%): accelerators, monolithic chips, silicon wafers, etc. The group also offers chiplet software and mask manufacturing equipment for advanced lithography;
- other (5%).
Net sales (including intragroup) are distributed geographically as follows: the United States (29.8%), China (24%), Singapore (18.1%), Taiwan (14.5%) and other (13.6%).
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