Wednesday, June 10, 2026
supply. That capacity crunch has prompted several major AI chip design companies to turn to Intel, The Information said.
The news is "evidence that AI's biggest players are racing to diversify a supply chain still heavily concentrated in TSMC," said Jacob Bourne, technology analyst at eMarketer.
Since Tan took charge, Intel has secured billions of dollars of investments from the Trump administration, Nvidia and SoftBank.
It also landed Tesla as the first major customer for its next-generation 14A manufacturing process to make chips for Elon Musk's Terafab project, an advanced AI chip complex he has ?envisioned in Austin.
The Trump administration has also been trying to drum up business for Intel, an official said last month.
"Beyond the standard need to diversify, Google and Nvidia are even more motivated than usual to work with Intel. Supporting Intel supports U.S.-based manufacturing, which is important for the relationship with the U.S. administration," said D.A. Davidson analyst Gil Luria.
Last month, the Wall Street Journal reported that Intel has reached a preliminary deal to make some chips for Apple devices following intensive talks for more than a year.
Google, meanwhile, has been pushing ?to make its in-house AI chips a viable ?alternative to Nvidia's dominant GPUs, with sales of its tensor processing units becoming a growth driver for the company's cloud revenue.
By: DocMemory
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