Google designing its own server processors

Google appears to be working on designing its own processors for its servers, according to a Bloomberg report. The agency has reported citing a knowledgeable source that the Mountainview giant is leveraging technology from ARM Holdings to build processors in house. According to this person, Google will be able to manage interactions between hardware and software in a better manner, by designing its own processors. The anonymous source, however, gave a disclaimer that the company's plans could change, as a final decision on the matter was yet to be taken. Google declined to comment on whether the company was indeed making its own chips. "We are actively engaged in designing the world's best infrastructure," Liz Markman, a spokeswoman for Google told Bloomberg. "This includes both hardware design (at all levels) and software design," she added.

The report also notes: "Google has been designing its own data centres around the world with servers to power search, video, online communications and other features. Moving into chip design could take away revenue from Intel, which has counted on Internet companies to help drive processor sales. Google is Intel's fifth largest customer, accounting for about 4.3 percent of its revenue, according to Bloomberg supply chain analysis. ARM-based chips dominate in mobile phones and tablets where companies such as Qual command Samsung Electronics have fended off Intel's attempts to expand. Intel controls more than 95% of the market for chips for servers that use personal-computer processors, with Advanced Micro Devices making up the rest. AMD and other companies have announced plans to use ARM-based designs for the server-chip market."