Microsoft appears to be working on an in-house ARM-based processor that could rival Apple's M1 silicon. Early reports suggest that the hardware would primarily see use in Microsoft's vast cloud computing servers, but it may have other uses.
The news represents a major shift by Microsoft, pushing away from Intel processors and bringing some manufacturing and design decisions back to Redmond.
Will Microsoft Start Making ARM-Based Processors?
The news that Microsoft will begin designing ARM-based processors in-house comes as a surprise.
First reported by Bloomberg but as yet unconfirmed, the move would align Microsoft with Apple and Amazon, who both manufacture ARM processors better suited to their hardware than an off-the-shelf processor solution.
A new Microsoft-developed processor would be unlikely to feature in mobile hardware straight away. Bloomberg's report indicates that the ARM processor would be "likely to result in a server chip than one for its Surface devices."
Microsoft spokesman Frank Shaw said:
Because silicon is a foundational building block for technology, we're continuing to invest in our own capabilities in areas like design, manufacturing and tools, while also fostering and strengthening partnerships with a wide range of chip providers.
So, while Microsoft is not confirming the Bloomberg report, it is also not denying it either.
An Intel statement was equally non-committal to the news, as you might expect.
The incredible demand for computing fueled by new workloads like AI is driving more silicon experimentation in the cloud. Building on decades of x86 ecosystem innovation, we are committed to providing customers the world's best CPUs and new products from GPUs to AI chips. In this expanding market, we expect to gain share in many areas like AI training, 5G networks, graphics and autonomous driving.
Microsoft Playing Catch-Up in ARM Processor Battle
Apple's excellent M1 chip caught its competitors sleeping. The M1 processor has received rave reviews and is built using ARM architecture. It is no wonder news linking Microsoft and ARM has emerged so soon after Apple's outstanding hardware launch.
The announcement does raise other questions, though.
Microsoft is currently working in conjunction with Qualcomm, with Microsoft's top-tier Surface Pro X hardware running on a modified Qualcomm 8CX processor—which is an existing ARM design. That relationship would presumably continue, at least until Microsoft is confident of bringing consumer-level processor design in-house alongside their prospective server chips.
In the long-term, moving at least some consumer-focused processor design in-house will allow Microsoft to create hardware that suits their operating system and overall product design. Apple has done exactly this with the M1 chip and already reaping the rewards.
ARM processors are famously power efficient, which is one of the reasons Amazon uses their designs to power its own vast data centers. Microsoft could well be thinking ahead to reducing overall power consumption as data requirements continue to expand.