Taiwanese chip design giant MediaTek is developing an Arm-based personal computer chip to run Microsoft’s Windows operating system, similar to Qualcomm’s Snapdragon X Elite for Copilot+ laptops.
This development aligns with Microsoft’s recent unveiling of a new generation of laptops featuring chips designed with Arm Holdings technology, which are powerful enough to support advanced artificial intelligence applications—an area executives believe represents the future of consumer computing. The MediaTek chip is tailored to support this initiative.
Microsoft’s strategic move is positioned as a direct challenge to Apple, which has been utilizing its Arm-based chips for Mac computers for approximately four years. The decision to optimize Windows for Arm architecture could also significantly challenge Intel’s longstanding dominance in the PC market.
However, when unveiling its Copilot+ laptops, Microsoft stated that only Qualcomm is licensed to create chips for Arm-based laptops.
In response to the news, MediaTek’s Taiwan-listed shares rose 2.4 percent on Wednesday, outperforming the broader market index, which gained 1.2 percent.
The MediaTek chip for Windows Copilot+ will launch late next year. This will coincide with Qualcomm’s exclusive deal to supply chips for expired laptops.
This arrangement will end in 2024, allowing other companies to enter the market. MediaTek’s chip will be based on Arm’s ready-made designs, which can significantly accelerate development by reducing the amount of custom design work required.
Whether Microsoft has approved MediaTek’s PC chip for its Copilot+ Windows program remains unclear. According to Arm executives, one of its customers built a chip using ready-made components in roughly nine months. However, MediaTek’s design is not yet complete, and advanced chip development typically takes experienced design firms more than a year to construct and test, depending on the complexity.
Microsoft initially partnered with Qualcomm in 2016 to transition the Windows operating system to Arm’s processor architecture, which is well-suited for smartphones’ low power consumption. Microsoft granted Qualcomm an exclusivity agreement to develop Arm-based Windows-compatible chips until 2024.
With Qualcomm’s exclusivity arrangement’s upcoming expiration, other chip designers are creating chips that will support Microsoft’s new push towards Arm-based designs. Historically, Windows machines have relied on chip architectures from Advanced Micro Devices (AMD) and Intel.
In addition to MediaTek, NVIDIA and AMD reportedly work on Arm designs for Windows machines. NVIDIA’s effort to develop a PC chip involves collaboration with MediaTek, though MediaTek’s project for a standalone PC chip is separate from its work with NVIDIA.
This diversification of partners and the integration of Arm technology into Windows PCs mark a significant shift in the computing landscape, potentially redefining the competitive dynamics of the PC market.
