Intel reports that Microsoft will design its own chips for PCs and servers

Satya Nadella, CEO of Microsoft Corporation, speaks at the company’s annual shareholders meeting on November 29, 2017 in Bello, Washington.

David Ryder | Bloomberg | Getty Images

Intel continued to fall 6.3% A Bloomberg report Microsoft plans to design its own chips for its surface PCs and servers.

Intel has a long-standing partnership with Microsoft as the primary processor maker for Windows PCs.

“As Silicon is a foundation for technology, we continue to invest in our own capabilities in areas such as design, manufacturing and tools, while at the same time developing and strengthening partnerships with a wide range of chip providers,” said Microsoft spokesman Frank Shaw. In a statement.

The report comes a month after Apple began selling PCs using its own M1 processor instead of Intel chips. Microsoft chips are said to be based on technology from Arm, which is in the process of receiving it from Nvidia Softbank.

Apple chips for its iPhones and Amazon Server chips It is also based on the Armin instruction package, which is different from the x86 technology used by Intel.

Earlier this month, a senior executive at Microsoft did not reject the idea that Microsoft would create its own “first-party” chips at a conference.

“Our partnership in this world, from OpenAI initiatives, to our relationship with Intel and Arm upgrades, certainly points to the need to have advanced capabilities, whether we create it as a first party or as an ecosystem. Vice President Judson Altaf said this while attending the UPS Global, Technology, Media and Telecommunications Conference on December 8th.

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Windows currently runs on hand-based PCs, usually with Qualcomm-made chips. Microsoft introduced the Surface RT tablet in 2012, which had an arm chip from Nvidia, although the device was discontinued in 2013. Last year it introduced the Surface Pro X with the Qualcomm Arm chip, and this is the year it came up with the updated version of the device.

Microsoft said in 2017 It is working with arm server makers to improve silicon for use in its own data centers.

Intel reported 85.85 billion in revenue from its group selling PC chips for the quarter ended September. Server chips are a big business for Intel. For the quarter ended September, Intel reported $ 5.91 billion in revenue for its data center group.

In recent years Intel has faced challenges in making its chips. Compared to other chip designers, Intel controls its own chip factory called “Fabs”, which contracts with companies in Asia to manufacture chips for customer specifications.

The more transistors a chipmaker can fit in one place, the more efficient a chip will be. Currently, Intel sends chips with 10-nanometer transistors, but exclusive founders such as DSMC now make 5-nanometer chips, which are technically superior.

Earlier this year, Intel CEO Bob Swann said he would consider it Its production outsourcing, Like Apple does.

Intel did not immediately respond to a request for comment.

Ord Jordan Nowet contributed to this story.

Veronica Tucker

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