Exclusive: MediaTek designs Arm-based chip for Microsoft’s AI laptops, say sources

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MediaTek AI chip

TAIPEI/SAN FRANCISCO (Reuters) -MediaTek, a Taiwanese chip design giant, is developing an Arm-based PC chip. Three sources familiar with the matter revealed this.

Microsoft recently introduced new laptops featuring Arm-based chips designed to run AI applications. The MediaTek chip aligns with this initiative.

The software company’s plans take aim at Apple which has released its own Arm-based chips for Mac computers for roughly four years. And Microsoft’s decision to optimize Windows for Arm could threaten Intel’s longstanding dominance in the PC market.

MediaTek and Microsoft declined to comment.

MediaTek’s Taiwan-listed shares closed up 2.4% on Wednesday, outperforming the broader index’s 1.2% gain.

The MediaTek PC chip is set to launch late next year after Qualcomm’s exclusive deal to supply chips for laptops expires, two of the people said. The chip is based on Arm’s ready-made designs, which can significantly speed development because less design work is needed using ready-made, tested chip components.

It was not immediately clear whether Microsoft has approved MediaTek’s PC chip for the Copilot+ Windows program.

Executives at Arm have said one of its customers used the ready-made components to build a chip in roughly nine months for a design that is already complete, which MediaTek’s is not. For experienced chip design businesses, advanced chips typically take considerably more than a year to construct and test, depending on the complexity.

As the MediaTek AI chip makes its way into Microsoft’s laptops, the implications for the tech industry are profound. This development could set a new standard for AI integration in personal computing.

Furthermore, the partnership aims to push the boundaries of what AI can achieve in consumer electronics.

Moreover, the success of this initiative might spur further collaborations between chip manufacturers and software giants.

Additionally, consumers stand to benefit from devices that are not only more powerful but also more intuitive.
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