Microsoft Is Working On In-House Chips For Its Servers, PCs: Report

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  • Microsoft depends heavily on Intel and Advanced Micro Devices Inc to supply the chips for its Azure cloud computing services and its Surface PCs
  • The report said that the person familiar with the matter said Microsoft is working with computing cores licensed from Arm, rather that designing its own custom cores as Apple does

As per a report by Reuters, Microsoft Corp is working on in-house processors for the servers running its cloud-computing services and Surface line of personal computers, potentially cutting its reliance on Intel Corp as per a person familiar with the matter told Reuters. The report said that the chips would use technology from Arm Ltd as per the person. Bloomberg previously reported Microsoft’s move.

Computing cores licensed from Arm

The report added that Microsoft depends heavily on Intel and Advanced Micro Devices Inc to supply the chips for its Azure cloud computing services and its Surface PCs. It added that the company had already been working with Ampere Computing and Marvell Technology Group Ltd on Arm-based server chips, and with Qualcomm Inc for an Arm-based processor in its Surface Pro X device.

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The report said that the person familiar with the matter said Microsoft is working with computing cores licensed from Arm, rather that designing its own custom cores as Apple does. Arm declined to comment. The report said that Microsoft spokesman Frank Shaw said the company views semiconductors as a key focus area. He said in a statement that because silicon is a foundational building block for technology, the company is continuing to invest in it’s own capabilities in areas like design, manufacturing and tools

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