Google’s reported backup TPU order targets 2028 manufacturing at Intel as TSMC capacity tightens

Google has placed an order with Intel for the manufacture of its tensor processing units, with deliveries planned for 2028, according to a Reuters report that cites people familiar with the discussions. The move would add capacity options for Google’s custom AI chips as chip demand continues to outstrip supply at Taiwan Semiconductor Manufacturing Co.

A TPU, or tensor processing unit, is an application-specific AI accelerator designed to speed up training and inference for machine-learning workloads. Google markets TPUs through Google Cloud, and says they power Gemini and other Google AI services.

Reuters said the reported Intel order is for “more than three million” TPUs in 2028, and that the claim was reported by The Information. Reuters added it could not independently verify the report, and said Intel declined to comment while Alphabet and Nvidia did not immediately respond to requests for comment.

The Reuters report also said Nvidia is evaluating whether Intel’s technology could be used to make a processor that combines four graphics chips into a single unit, though Reuters did not say Nvidia has placed an order. The potential Google deal would, if it materializes as described, strengthen Intel’s efforts to expand foundry services, an area it has tried to rebuild after losing advanced chipmaking share to TSMC.

For Google, the reported shift points to a broader trend in the AI hardware market: hyperscalers and chip designers are increasingly looking for second sources of leading-edge manufacturing capacity. Reuters linked that behavior to a supply crunch at TSMC, saying soaring demand has left the company struggling to bring in enough supply, prompting multiple AI-chip customers to consider Intel.

Intel’s reported upside is straightforward but not guaranteed. A major AI-chip customer contract would boost confidence in Intel’s contract-manufacturing roadmap, but semiconductor production timelines depend on complex process technology readiness, packaging capacity, yield performance, and customer qualification. Reuters framed the story as evidence of supply-chain diversification, not as an announced, finalized order.

The biggest unknown is the commercial detail. Neither Google nor Intel confirmed the reported order publicly, and Reuters did not disclose the contract’s financial terms, the exact TPU generation involved, or how the manufacturing agreement would interface with Google’s broader TPU system supply chain. Any future confirmation would likely arrive through company commentary, investor materials, or supplier reporting closer to production.