Google's Chromebook laptops may soon be powered by computer chips made in-house.
(Ore Huiying/Bloomberg)Google will use computer chips made in-house for its laptop and tablet computers, according to a report, making it the latest tech giant looking to develop its own semiconductors amid a global shortage.
The company follows rival Apple ‘s (ticker: AAPL) path in replacing chips made by Intel with its own semiconductor components in Mac computers and laptops.
Shares in Alphabet (GOOGL), which owns Google, rose 0.5% in the U.S. premarket, while shares in Intel (INTC) and Advanced Micro Devices (AMD), which currently make chips for Google, appeared to be unaffected by the news. Intel stock was 0.4% higher while AMD shares rose 0.6% before New York trading got underway.
Google plans to roll out its own computer processing units in Chromebook laptops and tablets from 2023, Nikkei Asia reported on Wednesday, citing three anonymous sources.
The company will also ramp up efforts to build chips for Pixel smartphones and other devices, according to the report, after announcing in-house processors appearing for the first time in the coming Pixel 6 phone.
Google was “particularly inspired” by Apple’s success in building chip components for the iPhone and replacing Intel’s computer processors in Macs, the report said.
The new chips being developed by the tech giant are based on designs by Arm, the British company whose semiconductor intellectual property is used in most of the world’s mobile devices, the report said.
Softbank, which bought the company in 2016, reached a deal to sell Arm to U.S. chip giant Nvidia (NVDA) last September in a high-profile takeover that faces intense regulatory scrutiny, in large part due to competition concerns.
Also read: Apple Is Putting More Chips on Semiconductors
A recent boom in demand for semiconductors, in tandem with manufacturing delays and supply chain bottlenecks due to the pandemic, has caused a worldwide shortage of chips, putting pressure on industries from auto makers to electronics giants.
Google joins peers in Big Tech and beyond in looking to develop its own chip making capabilities amid this global shortage. Amazon (AMZN), Facebook (FB), Microsoft (MSFT), Tesla (TSLA), and Alibaba (BABA) are among the companies working on in-house chips to power everything from data centers to personal electronics to cars.
Semiconductors are sensitive and complex devices that are difficult to build, with specialists like Taiwan Semiconductor Manufacturing Co. (TSM), Qualcomm (QCOM), Intel, AMD, and Samsung dominating the industry—so Google faces a challenge in manufacturing its own.
Write to Jack Denton at jack.denton@dowjones.com
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September 01, 2021 at 07:48PM
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