Google's Rumoured TPU Order Gives Intel Foundry Ambitions a Major Boost

Intel's efforts to rebuild its chip manufacturing business may have received one of its biggest endorsements yet.

Alphabet-owned Google has reportedly placed an order with Intel to manufacture more than three million Tensor Processing Units (TPUs) in 2028, according to a report by The Information cited by Reuters. The development, if confirmed, would mark a significant win for Intel's foundry business as it looks to challenge the dominance of Taiwan Semiconductor Manufacturing Company (TSMC) in advanced chip production.

The report also claims that Nvidia is evaluating Intel's manufacturing technology for a future processor design that could combine four graphics chips into a single package. While Nvidia has not placed an order, the evaluation suggests that Intel's manufacturing capabilities are increasingly attracting attention from the AI industry's biggest players.

Another Sign of Intel's Turnaround

The reported Google deal adds to a growing list of developments suggesting that Intel's turnaround strategy is gaining traction after years of losing ground to TSMC in semiconductor manufacturing.

Under CEO Lip-Bu Tan, Intel has been aggressively pursuing external customers for its foundry business, seeking to transform itself from a company that primarily manufactured its own chips into a contract manufacturer capable of serving the broader semiconductor industry.

Google's TPUs are custom AI accelerators used extensively across the company's cloud infrastructure and AI services. Securing a manufacturing contract of this scale would not only generate significant revenue for Intel but could also help validate its process technology among other prospective customers.

Tesla Has Already Backed Intel's Next-Generation Process

The latest report comes just weeks after Tesla CEO Elon Musk revealed plans to use Intel's upcoming 14A manufacturing process for chips that will power the company's proposed Terafab project in Austin, Texas. The facility is envisioned as a large-scale AI chip complex designed to support Tesla's growing artificial intelligence ambitions.

Taken together, the reported Google order, Nvidia's evaluation efforts, and Tesla's commitment suggest that Intel's foundry business is beginning to gain credibility among companies that have historically relied on other manufacturing partners.