The world's largest software maker  Microsoft is working on in-house processor designs for use in server computers that run the company's cloud services.  The tech giant is using Arm designs to produce a processor that will be used in its data centres, according to people familiar with the plans.

Company another chip that would power some of its Surface line of personal computers. The people asked not to be identified discussing private initiatives. Intel's stock dropped 6.3 percent to close at $47.46 (roughly Rs. 3,500) in New York, leaving it down 21 percent this year. The move is more likely to result in a server chip than one for its Surface devices, though the latter is possible, said one of the people.

The company's chip design unit reports to Jason Zander, head of the Azure cloud business. Currently, the tech giant uses Arm-based chips from Qualcomm in some of its Surface PCs. It ported Windows to work on these types of chips, which have typically been used in devices. Apple also uses Arm technology in its processors. 

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