Google could make own chips, threatening Intel

MADRID (MarketWatch) -- Google Inc. GOOG -0.86% is considering making its own server processors, which could pose a threat to Intel Corp. INTC -0.74% , Bloomberg reported Friday, citing a source. The move would be costly for Google, which could use technology from ARM Holdings PLC UK:ARM +2.98% ARMH +2.64% ,
but if it helps Google with costs, it could encourage other Internet companies to do the same, said Patrick Wang, analyst at Evercore Partners, quoted in the report. The source said Google had made no decisions. Google spokeswoman Liz Markman declined a comment to Bloomberg about the report, nor would Intel or ARM comment. Shares of Intel fell around 2% in late trade on Thursday, while shares of ARM Holdings rose 1.7% on Friday.