Google to design own server chips: Reports

Google is considering designing it own server chips in a bid to form a more fluid interaction between its software and hardware, Bloomberg reported.

The internet giant would look to technology from ARM Holdings Plc, the report said.

Currently the company is Intel's fifth-largest customer, and if it were to move into server chips, it could hit Intel's revenue. According to Bloomberg, Google represented 4.3 per cent of Intel's revenue.

Industry experts, say it would make much sense if Google started designing its own server chips, as it had already designed its own data centres complete with servers around the globe.

Working with ARM was not a bad idea either, given that its chips currently ruled the mobile sector when it came to smartphones and tablets.

There were a couple of clues pointing to Google's interest in server chips - it recently joined a group started by IBM that licensed technology used in data centres -- such as chips for servers.

Google had also recently posted a job opening for a digital design engineer, with specific qualifications in application-specific integrated circuits (ASICs).

According to commentators, with its own microprocessors, Google would be able to not only better manage interactions between software and hardware, the company would be able to add custom IP, various special-purpose accelerators, better manage power consumptions, performance and input / output capabilities of its chips.

Additionally, the company would also be able to tailor pricing of such SoC in accordance with particular needs.

Google is one of the world's largest buyers of server microprocessors and in case the company were to proceed with the plan, it would impact revenue of Intel Corp as well, but would also give a large revenue stream to ARM Holdings.

Xbitlabs.com quoted Liz Markman, a spokeswoman for Google, who declined to confirm chip development projects at Google as saying the company was actively engaged in designing the world's best infrastructure. She added, this includes both hardware design (at all levels) and software design.