Economy

Intel lies in a report that Microsoft will design special chips for computers and servers

Microsoft CEO Satya Nadella speaks during the company’s annual shareholder meeting in Bellevue, Washington, on November 29, 2017.

David Ryder | Bloomberg | Getty Images

Intel fell 6.3% the following Friday Bloomberg Report Microsoft plans to design its own chips for Surface PC as well as servers.

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

The report comes a month after Apple started selling computers with its M1 processor, rather than Intel chips. The chips are said to be based on technology from Arm, which Nvidia has been working on from Softbank.

Apple chipsets for iPhone and Amazon Server chips It is also based on the Arm instruction set, which differs from the x86 technology that Intel mainly uses.

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

“ The partnerships we have in this area, from the OpenAI efforts that we have to our relationship with Intel and Arm developments, which definitely point to the need to have advanced capabilities here, whether we build it as a first-party or we have an ecosystem, ”said Judson Altoff, Executive Vice President Business Microsoft’s global business, during an appearance at the Global UPS Global, Technology, Media and Communications conference on December 8th: “About external partners, not yet disclosed.”

Microsoft said in 2017 It has been working with Arm server makers to improve silicon for use in its data centers. Windows currently works on Arm-based computers, usually with chips from Qualcomm. Microsoft wants to ensure that more apps can run on devices using Arm chips. I started testing software that could enable people to run apps originally built for devices with 64-bit chipsets such as AMD and Intel.

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Intel reported $ 9.85 billion in revenue from its PC chip group for the September quarter. Server chips are also Intel’s core business. In the quarter ending in September, Intel reported a profit of $ 5.91 billion to the Data Center Group that sells server chips.

Intel has faced challenges in manufacturing its chips in recent years. Intel controls its own chip plants, called “fabs,” compared to other chip designers, who contract with companies in Asia to manufacture chips according to customer specifications.

The more transistors a chip maker can fit in the same space, the more efficient the chip can be. Currently, Intel ships chips with 10nm transistors, but dedicated foundries, like TSMC, are now making 5nm chips, which are technically superior.

Earlier this year, Intel CEO Bob Swan said he was considering it Outsourcing of its manufacture, Like what Apple does.

Representatives of Intel and Microsoft did not immediately respond to requests for comment.

Jordan Novate contributed to this story.

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