Now Microsoft has its ARM-based chips for servers and Surface PCs

The processors will be used in servers for Microsoft's Azure cloud services and will be based on ARM designs, as per the report. Microsoft is also "exploring" the use of another chip for some of its Surface devices, but it is not very clear if this will progress to a final product.

Microsoft currently uses Intel-based processors for most of its Azure cloud services, and most of the company's Surface line is also powered by Intel chips. Microsoft has worked with AMD and Qualcomm to source custom chips for its Surface Laptop 3 and Surface Pro X devices, showing its willingness to move away from just Intel.

Microsoft co-designed an ARM-based SQ1 processor for the Surface Pro X last year and followed it up with an SQ2 variant a couple of months ago. AMD also worked with Microsoft to create a custom version of its Ryzen processor for the Surface Laptop 3.

A change to ARM on the server-side is undoubtedly more significant, particularly for Intel. Apple has already signalled its move away from Intel chips for its Mac products, with its own M1 silicon based on ARM designs. Intel's server chips currently rule the server market, and AMD has already been cutting through this lucrative market with its own EPYC processors.

Amazon, Microsoft's main cloud rival, also appears to be a significant threat to Intel and AMD, with their own ARM-based Graviton2 processors launched a year ago on AWS. Still, ARM-based servers are a small part of the market right now, despite the performance and cost benefits they can offer.

We reached out to Microsoft to comment on the rumours, and the company did not deny them. "Because silicon is a critical component of the technology, we continue to invest in our own capabilities in areas such as design, manufacturing and tooling, while fostering and strengthening partnerships with a wide range of chip vendors," says Frank. , Microsoft's chief communications officer. Shaw.