Intel reports that Microsoft will manufacture its own chips for PC servers


Sat Fischer Satella Nadella, Chief Executive Officer of Micro.

David Ryder | Bloomberg | Getty Images

On Friday, Intel cut 6.3% following a Bloomberg report that Microsoft plans to design its own chips for its Surface PCs as well as servers.

Intel has long partnered with Micro .ft as the primary processor maker for Windows PCs.

“As Silicon is the foundation building block for technology, we continue to invest in our own capabilities in areas such as design, manufacturing and tools, while promoting and strengthening partnerships with a wide range of chip providers,” said Frank Shaw, spokesperson for Microsoft Microsoft. , “Said Frank Shaw, a spokesman for Microsoft Microsoft. In a statement.

The report comes a month after Play started selling PCs using its own M1 processor instead of Intel chips. Micro .ft chips are based on Arm’s technology, which Nvidia is preparing to acquire from Softbank.

Apple’s chips for its iPhone and Amazon’s server chips are also based on Arm’s instruction set, which differs from the x86 technology that Intel primarily uses.

Earlier this month, a senior Microsoft executive denied the idea that Microsoft would make its own “first-party” chips at a conference.

“The partnership we’ve had in this area, from OpenAAI’s efforts to our relationship with Intel and Arm Development, to the need to have advanced capabilities here, whether we make it a first-party or ecosystem. Among third-party partners, That remains to be seen, “said Judson Elthof, Microsoft’s vice president of global business, at the December 8 UBS Global, Technolog, Media and Telecommunications conference.

Windows currently runs on arm-based PCs, usually with chips made by Qucom LuckM. Microsoft introduced the Surface RT tablet in 2012 which had an arm chip from Nvidia, although the device was discontinued in 2013. Last year it introduced the Surface Pro X with a Qualcomm arm chip, and it came out with an updated version of this device. Year.

Microsoft said in 2017 that it was working with ARM server manufacturers to optimize silicon for use in its own data centers.

Intel reported આવક 9.85 billion in revenue from its group selling PC chips in the quarter ended September. Server chips are also a big business for Intel. For the quarter ended September, Intel reported revenue of 5. 91.591 billion from the sale of server chips to its data center group.

Intel has faced challenges in producing its chips in recent years. Compared to other chip designers, Intel controls its own chip factories, called “fabs”, which contract with Asian companies to make chips in client specifications.

The more transistors a chipmaker can fit in the same space, the more efficient the chip is. Currently, Intel Ships chips with 10-nanometer transistors, but dedicated foundries like TSMC are now making 5-nanometer chips, which is technically the best.

Earlier this year, Intel CEO Bob Swann said he was considering outsourcing his product, as Apple Pul does.

Representatives from Intel and MicroSt. Did not immediately return requests for comment.

– Jordan Novate contributed to this story.

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