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Google (GOOG) Mulls Designing Own Server Chips (INTC) (ARMH)

December 12, 2013 4:15 PM EST
(Updated - December 12, 2013 4:42 PM EST)

Chipmakers were lower Thursday following news that search giant Google (Nasdaq: GOOG) might be considering production of its own server processors.

Bloomberg said that Google would tap technology from ARM Holdings (Nasdaq: ARMH) for the processors. The move would certainly add pressure to Intel (Nasdaq: INTC), which draws a solid amount of its revenue from enterprise sales and data centers.

Google would be able to better manage interactions between hardware and software with its own setup, sources said. One spokesperson for the company said, We are actively engaged in designing the world’s best infrastructure ... This includes both hardware design (at all levels) and software design.

Intel has never really gotten a strong foothold in the mobile market, with names like Samsung, NVIDIA (Nasdaq: NVDA), and Qualcomm (Nasdaq: QCOM) largely being able to block out the company.

Advanced Micro Devices (NYSE: AMD) was also planning to use ARM Holdings-based technology for the construction of server chips.

Shares of Intel and AMD are lower in the after-hours session.


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