Microsoft is working on an in-house chip to replace Intel processors in surface laptops

Microsoft is working on internal processor designs for use in server computers running the company’s cloud services, industry-wise efforts to reduce reliance on Intel’s chip technology.

According to people familiar with the plans, the world’s largest software maker is using arm designs to produce the processor used in its data centers. It explores using another chip that powers some surface range of personal computers. People were asked not to identify those discussing private programs. Intel stock fell 6.3 percent to close at $ 47.46 (approximately Rs. 3,500) in New York, down 21 percent this year.

The main commitment of this action Microsoft To supply the most important piece of hardware it uses. Such as cloud-computing rivals Amazon Are already well on their way to similar endeavors. They argue that their chips are better suited to some of their needs, primarily bringing cost and performance advantages over the off-the-shelf silicon provided by Intel.

Microsoft’s efforts are likely to lead to a server chip rather than its surface devices, the latter being possible, said one of the public. The company’s chip design unit head reports to Jason Xander Azure Panos Panay, which oversees surface products, is more of a cloud business. Representatives from Microsoft and Arm declined to comment on whether Microsoft works on Microsoft servers and PC processors.

“Since Silicon Technology is a building block, 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. .

Microsoft has accelerated the hiring of processor engineers in recent years, hiring in the backyard of chip makers Intel, Advanced micro devices, Nvidia And those that are always cut Qualcomm Its server dropped chip attempts.

AMD is the second largest maker of PC-powered chips and is making a comeback in the server market after much of Intel’s closure over the past decade. AMD stock fell 1 percent on Friday. Gillinks, another chipmaker AMD is buying, fell 1.8 percent.

Intel’s Zion Server chips currently power most machines in the heart of the Internet and corporate networks, generating the company’s most profitable revenue streams. Despite recent gains by AMD, it still holds 90 percent of the market. Some Zion models are more expensive than a compact car.

“Incredible demand for computing fueled by new workloads such as AI has led to more silicon experiments in the cloud. Based on decades of x86 ecosystem innovation, we are committed to delivering the world’s best CPUs and new products from GPUs to AI chips,” Intel said in a statement. “In this expanding market, we hope to gain a foothold in many areas such as AI training, 5G networks, graphics and autonomous driving.”

Consumers like Microsoft are increasingly turning to alternative solutions to understand the mountain of data generated by cloud computing and smartphones. The adoption of artificial intelligence to automate that process has led to a flood of new chip designs. A big concern for owners of huge data centers behind such services Office 365 Their growing hardware has become the cost of providing power to the footprint. Arm-based chips often have more power.

It follows if Microsoft pushes forward with its own chip for PCs Apple It is moving its entire Mac line from Intel processors. While Apple or Microsoft devices do not cover large segments of the PC market, their offerings are kept as premium products with slicker designs and more sophisticated capabilities. When announcing its first new Macs M1 chip, Apple improves performance compared to standard PCs.

Microsoft currently uses arm-based chips from Qualcomm on some of its surface PCs. It ported Windows to work on these types of chips commonly used in smartphones. Apple also uses arm technology in its processors. Other surface designs use Intel chips.

© 2020 Bloomberg LP

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