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Google developing own CPUs for Chromebook laptops

01 September 2021 12:07 (UTC +04:00)

Google is developing its own central processors for its notebook and tablet computers, the latest sign that major tech players see in-house chip development as key to their competitiveness, APA reports citing Nikkei Asia.

The U.S. internet giant plans to roll out the CPUs for laptops and tablets, which run on the company's Chrome operating system, in around 2023, three sources with knowledge of the matter told Nikkei Asia.

Google is also ramping up its efforts to build mobile processors for its Pixel smartphones and other devices after announcing it will use in-house processor chips for the first time in its upcoming Pixel 6 series, they said.

Google's growing focus on developing its own chips comes as global rivals pursue a similar strategy to differentiate their offerings. Amazon, Facebook, Microsoft, Tesla, Baidu and Alibaba Group Holding are all racing to build their own semiconductors to power their cloud services and electronic products.

Google was particularly inspired by Apple's success in developing its own key semiconductor components for iPhones as well as last year's announcement that it would replace Intel CPUs with its own offerings for Mac computers and laptops, two people familiar with Google's thinking told Nikkei Asia.

The new CPUs and the mobile processors that Google is developing are based on the chip blueprints of Arm, the Softbank-controlled U.K. chip company whose intellectual property is used in more than 90% of the world's mobile devices.

Separately, the company has high hopes for the Pixel 6 range and has asked suppliers to prepare 50% more production capacity for the handsets compared with the pre-pandemic level in 2019, two people told Nikkei Asia. Google shipped more than 7 million Pixel phones in 2019, its highest figure ever, but shipped just 3.7 million phones the following year as COVID ravaged the world, according to research company IDC.

Google told several suppliers in recent meetings that it sees potential for massive growth opportunities in the global market because it is the only U.S. smartphone maker building handsets using the Android operating system.

Regarding chip development, experts say Google's strategy is a logical move but not without challenges.

"We found that all the tech titans are joining the foray to building their custom chips because in that way they could program their own features into those chips that could meet its specific needs," Eric Tseng, chief analyst with Isaiah Research, told Nikkei Asia. "In that case, these tech companies could easily adjust R&D workloads without being restricted by their suppliers and offer unique services or technologies. In an ideal scenario, using one's own chips also means better software and hardware integration."

However, building chips requires massive investment and long-term commitments, and all these new tech players building their own chips also need to fight for production capacity with existing top chip developers from Intel, Nvidia, Qualcomm and others, Tseng said.