Google orders three million TPU chips from Intel for 2028

Monday 08 - 16:06

By: Dakir Madiha

Google orders three million TPU chips from Intel for 2028

Google has placed a large order for more than three million tensor processing units from Intel for delivery by 2028, according to a report citing four people with direct knowledge of the discussions. The agreement signals growing trust in Intel’s efforts to rebuild its semiconductor manufacturing business and expand its role in advanced chip production for artificial intelligence workloads.

The deal positions Intel as a potential alternative to Taiwan Semiconductor Manufacturing Company in the high end chip manufacturing market. Demand for artificial intelligence hardware continues to rise across major technology firms, pushing companies to diversify supply chains. Nvidia is also evaluating Intel’s advanced packaging technologies and its 18A process node for possible future production of next generation chips. No formal production order has been confirmed at this stage.

Separate industry reporting indicates that Nvidia is exploring a processor design that would integrate multiple graphics chiplets into a single unit, increasing performance density for artificial intelligence workloads. Earlier technical assessments also suggested that Intel’s packaging capabilities could support a portion of future Nvidia manufacturing needs, although the scope of any potential collaboration remains uncertain.

Market reaction to the report was immediate. Intel shares rose sharply in premarket trading, reflecting investor optimism around renewed demand for its foundry services. The company has already strengthened ties with Google through broader agreements covering data center processors and custom infrastructure chips used in artificial intelligence systems.

Intel’s foundry division has faced significant volatility in recent years as it competes to regain ground in advanced manufacturing. The company has committed substantial capital to expand production capacity and has secured multibillion dollar public support in the United States to accelerate its industrial recovery strategy.