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"We have licensed our architecture and our instruction set to Microsoft," said Ian Drew, executive vice president of marketing at Arm. "This type of license allows you to design your own microarchitecture."Only a select group of companies hold similar licenses to design their own Arm-based microarchitectures, including mobile phone chip giant Qualcomm, as well as Marvell Technology and Infineon Technologies."As an architectural licensee, Microsoft wants to go public about adding itself to that short list," Drew said.
I doubt MS will be trying to transition into the pc market, although I can see them using their own cpu in other areas such game consoles, and smart phones.