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Google Considering a Move to Chip Manufacturing

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According to Bloomberg News, Google Inc (NASDAQ:GOOG) is thinking about producing its own server processors with the assistants of ARM Holdings plc (ADR) (NASDAQ:ARMH), a British company that makes servers and chips for mobile phones and tablets. Google believes it can better integrate hardware and software with its own server processors. The news spells trouble for Intel Corporation (NASDAQ:INTC), the world’s largest chip maker. Google is the fifth largest client in terms of server chip sales for Intel. Losing Google and simultaneously gaining a rival would be a huge blow to Intel. It seems like Google wants to do everything by itself, no middle man.