Google contemplates homemade ARM chips to power its servers

Google Inc. (GOOG) is considering designing its own server processors using technology from ARM Holdings Plc (ARM), said a person with knowledge of the matter, a move that could threaten Intel Corp. (INTC)’s market dominance.

By using its own designs, Google could better manage the interactions between hardware and software, said the person, who asked not to be identified because the matter is private. Google, among the largest buyers of server processors, has made no decision and plans could change, said the person.

“We are actively engaged in designing the world’s best infrastructure,” said Liz Markman, a spokeswoman for Google. “This includes both hardware design (at all levels) and software design.” Markman declined to say whether the company may develop its own chips.