Microsoft may become the next manufacturer to move away from Intel processors. Apple made headlines after it announced Macs would be powered by its in-house chips moving forward. Apple then released a MacBook Air, MacBook Pro, and Mac Mini using the Apple M1 chip, which saw huge performance gains compared to its Intel-based Macs.
There is a fierce rivalry between two chipmakers: Intel and AMD. Both companies make great processors, however, Intel seems to always get notoriety among consumers. AMD continues to have a loyal following and, with the rise of ARM-based chips, Intel will have more competitors in the near future.
According to Bloomberg, Microsoft is designing its own ARM-based processor. The company apparently intends to manufacture an in-house chip to run its cloud services and data centers. ARM-based processors are a hot commodity due to their power efficiency. Portable devices such as smartphones and laptops can benefit from ARM processors because of their dependency on batteries rather than a constant source of power like desktop computers. Intel’s x86 processors are traditionally more powerful than ARM processors but use considerably more energy. Microsoft is known for its software, but the company has released plenty of hardware throughout the last decade. If its in-house processor is successful, there is a good possibility that Microsoft follows Apple’s approach and begins to use the ARM-based chip in its Surface PCs. The Surface Pro X was released in 2019 and runs on an ARM-based processor co-developed between Microsoft and Qualcomm. Unfortunately, the Surface Pro X was a failed attempt and a learning experience for Microsoft.
ARM-Based Processors Provide Independency
Most devices are marketed and sold by one manufacturer. However, it is common for manufacturers to use parts from competitors. For example, Apple and Samsung are smartphone competitors, but Samsung supplies the OLED panels for iPhone 12 models. These kinds of partnerships ease the production process but also create dependency and contribute to the cost of production. As a result, manufacturers are looking for solutions to maintain control while keeping costs to a minimum. ARM-based processors are proving to be an asset. Microsoft is said to be actively hiring processor engineers, including former Intel employees, to kickstart its development of an ARM-based processor. It may take a few years for a Microsoft-designed chip to hit the market but its release seems certain.
Intel took a huge blow with the departure of Apple. There is no telling what level of impact the chipmaker will suffer if Microsoft does decide to move forward with powering its PCs with an exclusive chip. For now, though, Intel remains the dominant player in chip manufacturing and, who knows, it may even release a revolutionary chip that forces companies to stay. To maintain its market position, it may have to.
Source: Bloomberg