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According to a recent article published on the Bloomberg website, the changes in the marketplace – which are quickly riding on the ever-accelerating development and use of mobile devices – have Google seriously investigating processor manufacturing. The article indicates that Google – already a dominant force – and their new interest in this market may have the super-power semiconductor developer, Intel feeling "threatened by the market's shift to mobile devices."
According to the article, the design and development of their server processors – assisted by ARM Holdings Plc (ARM) – is a current field that Google is considering using for a new game. The article states that Intel currently "_controls more than 95 percent of the market for chips in servers that use personal-computer processors._" Google's move into this marketplace would be very "_challenging and costly_, "according to the article since they gain revenue from "_selling Internet ads and other online services._"
Patrick Wang, a New York-based analyst at Evercore Partners Inc, was quoted in the article to say, "_Just showing willingness to shift away from Intel might help to price for Google (GOOG) and prompt other Internet companies, like Facebook Inc. and Amazon.com Inc., to do the same._" Wang continued to say in the article,
"_Google could be doing this for price negotiations. They don't have to do it — they have to talk about it._"
Written by Bryon Turcotte / December 16, 2013