Google is reportedly considering the option of jumping into the hardware game by designing its own server processors using ARM technology according to a source with knowledge of the matter as reported by Bloomberg. If true, the move could seriously threaten the market dominance that chip maker Intel currently enjoys.
The unidentified source said Google is interested in its own design as that would help them better manage the interaction between software and hardware. True enough, as Apple has been enjoying a similar advantage in the mobile space by keeping chip and software development under the same roof for years.
As Intel’s fifth largest customer, Google is one of the world’s largest buyers of server processors. Abandoning Intel to design and build their own chip could be detrimental to the iconic chip maker as Google is responsible for roughly 4.3 percent of their revenue according to supply chain analysis.
ARM is a dominant force in the world of mobile processors and is looking to expand into the realm of server chips, a market that Intel currently controls 95 percent of. AMD and a number of other companies, however, have announced plans this year to build ARM-based server chips which could ultimately cut into Intel’s market share if successful.
The plans are said to be tentative and no decisions have been made, we’re told. As such, plans could change at any time.
Spokespeople for both ARM and Intel declined to comment on the matter.
