Google Orders 3 Million AI Chips from Intel for 2028

Alphabet Inc.'s Google ordered Intel Corporation to manufacture more than three million tensor processing units (TPUs) for 2028. The deal follows months of testing and utilizes Intel's Embedded Multi-die Interconnect Bridge (EMIB) packaging technology to support the high-bandwidth memory required for Google's upcoming TPU v8e. This strategic shift aims to reduce Google's reliance on Taiwan Semiconductor Manufacturing Company (TSMC), whose packaging lines are reportedly sold out through 2027.

Intel is aggressively expanding its contract manufacturing business under CEO Tan Lip-Bu, supported by billions in investments from the United States government and SoftBank. The company has already secured Tesla as a customer for its 14A manufacturing process for Elon Musk's Terafab project in Austin and has reached a preliminary agreement with Apple. Nvidia is also evaluating Intel's 18A process node for a future processor that would combine four graphics chips into a single unit, though no formal order has been placed.

Following the news, Intel shares surged as much as 13% in New York. The company reported strong first-quarter 2026 financials, with total revenue rising 7% year-over-year to $13.6 billion. Intel's foundry unit contributed $5.4 billion to that total, representing 40% of the company's overall revenue. Other industry players, including SK Hynix, are also testing Intel's packaging technology for high-bandwidth memory integration.