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Report: Microsoft Developing In-House ARM Chips for Surface Devices, Data Centers

If true, the development is bad news for Intel. Apple has already begun dropping Intel processors in favor for ARM-based chips to power new Macs.

 & Michael Kan Principal Reporter

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Apple may not be the only company preparing to drop Intel chips. A new report from Bloomberg claims Microsoft is working on in-house ARM processor designs to power the company’s cloud services along with devices in the Surface line. 

If true, the development would be a blow for Intel. The company has long dominated the market for server processors. However, Intel’s chip manufacturing technology has been struggling to advance to the 10-nanometer and 7-nanometer node, which has opened the door for rival AMD to compete in the server space.

Bloomberg’s report doesn’t exactly mention why Microsoft is developing the in-house ARM processors. But it notes the ARM-based CPUs tend to run on less power. At the same time, Microsoft is looking to outcompete its rivals in the cloud computing space, which includes Amazon.   

One company that has already begun ditching Intel silicon is Apple. In November, the company introduced the first Mac products based on Apple’s own in-house ARM chip, known as M1. The new Macs have since gone on to receive rave reviews for their powerful CPU capabilities and long battery life.

Microsoft might be trying to follow in Apple’s footsteps. However, the company has already been using ARM-based chips in its consumer Windows products. Last year, Microsoft released the Surface Pro X, which uses a custom ARM processor known as SQ1 the company developed in partnership with Qualcomm.  

Based on our review, the SQ1 chip does offer some impressive CPU performance, in addition to long battery life. Where it suffers is software support: As an ARM-based chip, the SQ1 can only run x86 Windows applications originally designed for Intel systems using an emulator, resulting in sluggish load times.

According to Bloomberg, Microsoft's efforts will likely "result in a server chip than one for its Surface devices." The company did not immediately respond to a request for comment.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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