Google has ordered over 3 million tensor processing units from Intel for 2028 manufacturing, marking a major endorsement of Intel’s foundry capabilities. Nvidia is also evaluating Intel’s 18A process and advanced packaging, positioning Intel as a credible alternative to TSMC and impacting Google's future hardware sourcing.
Google has placed an order for more than 3 million tensor processing units to be manufactured by Intel for deployment in 2028, signaling a major ramp-up of its custom AI chip supply to support expanding workloads.
Nvidia is evaluating Intel's 18A process technology and advanced packaging for its future GPU production, indicating potential diversification away from its current semiconductor supplier and extending its partnership with Intel.
These developments showcase Intel's foundry business gaining credibility as an alternative to TSMC for leading AI and GPU customers, contributing to a 162% year-to-date increase in Intel's share price.
Following the order announcement, Google shares fell 1.27% intraday, while investors responded positively to Intel's foundry progress, reflecting market sensitivities to hardware sourcing dynamics.
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