Tech's Newest Chipmaker: Google?

Bloomberg reports that search giant Google  (NASDAQ: GOOGL  ) is considering a foray into designing its own chips. Those processors would power Google's vast network of data centers in a move toward vertical integration. In doing so, Google could realize efficiencies by designing its own hardware and software. That could also be a blow to Intel  (NASDAQ: INTC  ) , since Google is currently a big buyer of data center processors.

The chips would reportedly be ARM-based chips, but Google has no meaningful experience or expertise designing chips. It also doesn't have an instruction set license to make fully custom chips, but it could feasibly implement an off-the-shelf core. Even then, ARM's 64-bit server chips aren't expected to ship until late 2014. The move may not happen at all, but if it does, it wouldn't be immediately.

In this segment of Tech Teardown, Erin Kennedy discusses Google's plans with Evan Niu, CFA, our tech and telecom bureau chief.

Interested in the next tech revolution?
Then you'll need to learn about the radical technology shift some say forced the mighty Bill Gates into a premature retirement. Meanwhile, early in-the-know investors are already getting filthy rich off it, by quietly investing in the three companies that control its fortune-making future. You've heard of one of them, but probably not of the other two. To find out what they are, click here to watch this shocking video presentation!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2764755, ~/Articles/ArticleHandler.aspx, 4/20/2014 5:30:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement