Google has reportedly placed an order with Intel to manufacture more than 3 million of its specialised AI chips in 2028, a move which increases pressure on Taiwan Semiconductor Manufacturing Co. (TSMC).
The Information reported Google plans to use Intel to manufacture some of its tensor processing units (TPUs) after months of testing the chipmaker’s manufacturing capabilities.
Google Cloud’s TPUs are custom chips purpose-built for AI and optimised for training and inference of advanced AI models.
The news agency’s sources state the move reflects mounting strain on TSMC, which is struggling to meet surging demand for its foundry capacity, pushing customers to seek alternatives.
The deal marks another significant win for Intel after CEO Lip-Bu Tan, who spent much of last year shoring up Intel’s balance sheet through major external investments, now appears to be delivering on operational improvements which seemed unlikely a year ago.
In April 2026, Google expanded its long‑running partnership with Intel, committing to use multiple generations of the chipmaker’s CPUs in its AI data centres.
The same month, Intel revealed a plan to join Elon Musk’s Terafab AI chip project to build processors which would power the billionaire’s orbital data centres and humanoid robots.
Last month, the tech giant struck a joint venture agreement with asset management company Blackstone to create a US-based AI cloud company, giving a boost to its TPU manufacturing.
The Information also said Nvidia is evaluating Intel’s manufacturing technology for a forthcoming processor which could combine four graphics chips into a single unit.
