Microsoft might discontinue using Intel chip for its own ARM-based lineup

Intel has been under the pump for the past couple of months. It all started with Apple dumping the American chipset maker and deciding to go with their own Silicon-based chipsets.

It seems that Intel might be dealt another jolt as according to a Bloomberg report, Microsoft will be the next to dump Intel and deploy its own ARM-based chipsets in its next lineup of Surface laptops and its cloud infrastructure.

New chipset new plans

While there haven’t been many details that have been leaked about the chipset, reports suggest that the same chipset will also be used in some of Microsoft’s data centres.

The company is also exploring the option to deploy its new chipsets in the upcoming Surface laptops but reports suggest that it’s more likely to be used in the cloud context rather its computers.

At the moment, Microsoft uses Intel-based processor exclusively to power its Azure cloud services. Intel commands a dominant role in the cloud storage space with up to 90 percent share in that segment.

When the news of the development broke out, Intel’s shares dropped almost 6.3 percent at the close of the trading day.

Why the switch?

Speaking to Engadget, Microsoft spokesperson Frank Shaw said that “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.”

Stuck in the pipeline

This is not the first time that Microsoft has suggested that it wishes to explore new chipset makers. The company has dabbled with ARM-based chipsets in the past as well when it partnered with Qualcomm for the Surface Pro X for its SQ1 processors. Microsoft worked with the chipset maker to augment the chipset as per its needs.

It was back in 2018 that Microsoft said that it had considered using the ARM-based chipsets from Qualcomm in its Surface Go lineup but later opted-out after Intel had reportedly petitioned it against the idea.

Since Intel has already lost its allegiances with Apple, this move could be a massive blow for Intel which accounts for more than 95 percent of Microsoft’s entire PC and laptop lineup.

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