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Chromebook processor gets more TLC

Chromebook processor gets more TLC

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AMD (AMD) did it first, Apple (APPL) caught on, and now even Alphabet’s (GOOGL) Google is pushing Intel (INTC) to the side with an update that a new, bespoke silicon-based processor design is in the works deep inside the Googleplex.

Google plans to roll out its new chips for its Chromebooks and tablets line-up as early as 2023. It’s also announced that it’ll be moving to in-house designed processing chips for its upcoming Pixel 6 phones. The semiconductor arms race has been on the rise as of late with Apple most notably releasing its M1 chips in late 2020 for its Mac lineup. Tech companies are increasingly moving to in-house designs for chip-based products due to the decline in quality for Intel chips – the industry standard. Due to issues of lower performance speeds, Intel’s chips are losing their edge to other chipmakers like AMD and consumer-facing tech companies like Google.

Why it matters

Custom-made chips allow for better hardware and software integration — and in the longer-term it's one less cost for third-party hardware that these tech companies have to shell out. Google seems up to the challenge as its shares saw a 0.4% uptick compared to a 0.7% drop for Intel.

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