Key Highlights
- Google reportedly contracted Intel to produce over 3 million Tensor Processing Units scheduled for delivery in 2028
- Shares of Intel climbed more than 12% Monday morning after The Information published the exclusive report
- Nvidia hasn’t committed to orders yet but is evaluating Intel’s capabilities for a multi-chip processor design
- Nvidia is conducting preliminary tests using Intel’s cutting-edge 18A manufacturing technology
- These developments signal potential revival for Intel’s struggling foundry operations
Intel’s recent struggles have been well-documented. Monday’s revelations changed the narrative dramatically.
According to The Information’s exclusive report, Google has committed to an Intel contract for manufacturing more than 3 million Tensor Processing Units with a 2028 delivery target. The news triggered a surge of over 12% in Intel’s share price during morning sessions.
This agreement comes after extensive evaluation of Intel’s sophisticated packaging capabilities, the publication noted, drawing on information from four sources directly familiar with the negotiations.
Tensor Processing Units represent Google’s proprietary AI processors, designed for training and operating artificial intelligence systems. According to Morgan Stanley’s projections, Google’s TPU production will exceed 6 million units throughout 2027 and 2028 combined, positioning Intel’s portion as a substantial business win.
Nvidia Explores Manufacturing Partnership
Nvidia remains in the evaluation phase rather than commitment, but the graphics chip leader is assessing whether Intel’s manufacturing infrastructure can produce a specialized processor merging four GPU chips into one integrated unit. This development connects to Nvidia’s Feynman GPU platform, scheduled to launch in 2028.
Additionally, Nvidia is conducting preliminary testing of Intel’s 18A technology — representing its most sophisticated production capability — through shared wafer manufacturing runs.
The broader industry dynamics are crucial here. TSMC faces unprecedented pressure from the artificial intelligence chip explosion. Both cutting-edge production lines and advanced packaging facilities are operating at maximum capacity. This bottleneck is driving major technology companies to explore alternative manufacturing partners.
Signs of Foundry Business Recovery
Intel’s foundry division has struggled significantly in recent years. Strategic missteps enabled TSMC to establish a commanding lead in semiconductor manufacturing. However, this latest news suggests the competitive landscape may be evolving.
Tesla CEO Elon Musk announced in April that Tesla intends to utilize Intel’s 14A production process — the next generation beyond 18A — for manufacturing processors for its Terafab initiative, a sophisticated AI chip production center planned for development in Austin.
Google, Nvidia, and Intel declined to provide statements. Reuters could not independently confirm the reported details.
As of this writing, INTC shares were trading up nearly 9%, NVDA increased approximately 2%, while GOOGL declined roughly 1%. TSM fell more than 6%.
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