Bloomberg reports that Microsoft is looking to cut Intel out of the chain its supply chain and is designing its own ARM-based chipsets for Azure server units and possibly Surface PCs.
According to reports, Microsoft's efforts are led by Jason Zander, head of its Azure cloud business, and the company has been hiring processor designers in recent years. It sounds like Microsoft was disappointed when the Qualcomm abandoned its own ARM-based server chipset plans.
Microsoft spokesman Frank Shaw said: "Because silicon is a fundamental building block for technology, we continue to invest in our own capabilities in areas such as design, manufacturing and tools, while simultaneously strengthening partnerships with a wide range of chip providers".
The processors (chip) will mainly target servers, but there is some possibility that they will end up on some Surface devices. The performance of the Microsoft-branded Qualcomm processor on the Surface Pro X was disappointing, compared to the performance of the new processor based on Apple's M1 ARM.
Microsoft's new ARM chips will replace Intel's Xeon counterparts, with a focus on efficiency. After this news the price of Intel stock fell 6,3%.
