Intel to Manufacture Google's AI Chips as TSMC Faces Capacity Crunch

Intel has secured a deal to manufacture Google's tensor processing units (TPUs) after months of testing, as TSMC struggles to meet demand. The move signals progress in Intel's turnaround under CEO Lip-Bu Tan.

- Intel will produce Google's TPUs, with Nvidia also testing Intel's technology for a future processor. - The deal comes as TSMC faces a capacity crunch, boosting Intel's foundry business.

- Intel's stock has tripled this year, and the company has a backlog worth billions for packaging services. - Google's TPUs are a hot commodity in Silicon Valley, challenging Nvidia's dominance in AI inference.

The order of 3 million chips won't immediately turn Intel's manufacturing business profitable, but it could attract other customers and bolster Intel's technology status.