Apple Inc. (AAPL) may be looking to reduce its reliance on chipmakers Intel Corp. (INTC) and Qualcomm Inc. (QCOM), reportedly working on its own semiconductors for its MacBooks and iPhones.

Industry sources told the Nikkei Review that the Cupertino, Calif.-based company wants to lower its dependence on Intel for its notebook computer products and is looking to build one based on the ARM architecture. "Notebooks are becoming thinner, while consumers are demanding better mobility and longer battery life. That gives ARM's architecture, which is known for its power efficiency, a very good opportunity," a chip industry executive said in the report. (See more: Report: Apple May Drop Intel Chips.)

That could be a blow to Intel, given that it has long dominated the PC and notebook markets when it comes to supplying chips to perform the major functions of computers. ARM-based semiconductors, on the other hand, are the dominant chips used in mobile devices. Apple is also reportedly gearing up to develop its own semiconductors that can meld touch, fingerprint and display driver tasks. When the technology powerhouse announced the iPhone 8 and the iPhone X at an event in September, the company touted its new A11 chip that it claims is the most powerful and smartest chip ever found in a smartphone. The six-core processor is designed to accelerate 3D apps and games and has built-in artificial intelligence capabilities.

Two-Year Horizon

What’s more, the report noted Apple has invested in baseband modem chip research and development, something it currently purchases from Intel and Qualcomm, leading to expectations it will create its own semiconductors on that front, as well. It's not too much of a stretch, given that the company is embroiled in a legal battle with Qualcomm and poached its modem chip engineer Esin Terzioglu, noted the report. (See also: Did Apple Poach a Qualcomm Engineer to Develop Chips In-House?)

Bernstein analyst Mark Li told the Nikkei Review it will take Apple years before it can churn out its own semiconductors to power its devices. He said it is “unlikely” that the company will be able to roll out new chips within the next two years.

The iPhone maker isn’t the only one that is looking to lessen its reliance on Intel. Back in March, Microsoft Corp. (MSFT) said it is teaming up with Qualcomm to begin using chips developed by ARM Holdings in its servers. In an interview with Bloomberg News at the time, Microsoft’s vice president of its Azure cloud unit, Jason Zander, said the company created a Windows Operating System for servers that runs on ARM processors instead of Intel. According to Bloomberg, the move to embrace ARM processors and an open-source design for cloud servers is aimed at lowering the company’s costs by embracing new hardware and becoming more flexible so that it can stay on the same competitive footing with its rivals in the cloud market.

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