Consumers are increasingly turning to mobile devices such as smartphones and tablet computers Intel is the world's biggest chipmaker in the computer and server market.
However, it has not been as successful when trying to create smaller, more power-efficient chips.
Demand for mobile phone and tablet computers has been on the increase, and Google has been pushing its Android operating system, tying up with manufacturers.
Android has become the world's leading operating system for smartphones.
Intel, though, has faced stiff competition from UK rival ARM Holdings, which has managed to produce chips that are better suited to the smaller, more portable devices.
The hope for Intel is that by working with Google, it will manage to develop the next generation of processors that run on less power and emit less heat.