Microsoft seems to design its own custom SOCs based on ARM architecture for Surface devices. This is for the first time the software giant came forward to design its own processor for its Surface lineup, as earlier Microsoft uses Intel, Qualcomm or AMD's, processors.
According to some reports, Microsoft may also use these chipsets on Azure Cloud Service as well as consumer-centric PCs like Surface. This big move may result in Windows to function on ARM chips more efficiently as it is seen in Apple M1 powered Macs.Qualcomm on the SQ1 processor
However, Microsoft heavily rely on Intel processor and AMD to some extend as of now but Microsoft's transition to ARM processor is not that effective as the company have launched some of the Windows-powered devices housing Qualcomm's ARM-based Chipset. Which still faces native app compatibility as Microsoft doesn't control the App ecosystem as it's done by Apple. However, the company seemed effortlessly working on x64 emulation in preview for Windows 10 on ARM PCs, but those are still in beta stage. Moreover, the latest Surface Pro X housing an octa-core Microsoft SQ1 processor gets defeated alongside Apple M1 Macs in benchmarks scores.
Currently, we don’t know much information as to when Microsoft will use its own chips for the Surface products and Azure. But paying attention to rumours and leaked information the company for sure will reveal more details by next year.