Microsoft is reportedly developing its own line of ARM-based chips for use in Azure servers and, possibly, Surface devices.

Apple upturned the industry when it announced at WWDC 2020 that it was transitioning its Mac line of computers to its custom silicon, based on ARM designs. Early tests show that Apple’s new M1 MacBooks are faster than even the fastest Intel-based MacBook.

When Apple first announced its plans, Jean-Louis Gassée said Microsoft would be forced to adopt ARM processors to keep up with Apple’s newfound performance.

“This leaves Microsoft with a choice: Either forget Windows on ARM and cede modern PCs to Apple, or forge ahead, fix app compatibility problems and offer an ARM-based alternative to Apple’s new Macs,” said Gassée. “It’s a false dilemma, of course. Microsoft will forge ahead…with repercussions for the rest of the Windows PC industry.”

According to Bloomberg, Microsoft is moving ahead in that direction. Bloomberg’s sources said the company is working on its own line of ARM-based processors for its Azure servers. The company is also working on a processor that could be used in its Surface line of devices.

The news only adds to Intel’s woes, as the chipmaker battles with supply problems, unfixable security issues, moving to 7nm processors and considers outsourcing its manufacturing.