According to a report by Bloomberg, Microsoft is working on its own ARM processor to power its Surface lineup and cloud infrastructure. The company might be working on an in-house solution for its data centers.
The Surface Pro, which is an ARM device, is powered by a custom SQ1 processor, that is based on an existing Qualcomm design. Microsoft worked with the chipmaker to augment the chipset to its needs. Microsoft was also planning to use an ARM-based processor back in 2018 for the original Surface Go, but Intel reportedly petitioned against it.
There might not be a huge market share right now for Surface, but the decision could still be a blow to Intel. Apple is transitioning away from the company which it served for more than one and a half decade. This allowed Apple to develop more powerful and efficient processors like the M1 and we’ll see what it will develop in the future.