Apple Inc. (AAPL) plans to use its own semiconductors in Apple devices starting as early as 2020, per a Bloomberg report published Apr. 2, 2018. This looks to be part of Apple's overall plan to reduce its reliance on chipmakers Intel Corp. (INTC) and Qualcomm Inc. (QCOM). On Apr. 2, at 2pm Eastern Daylight Time, Intel stock was down over 8.5% from its opening price; Qualcomm was down over 3.6%.

This news is consistent with previous reports about Apple's chip-related undertakings. In a Nov. 30, 2017 piece in the Nikkei Review, a chip industry exec observed: "Notebooks are becoming thinner, while consumers are demanding better mobility and longer battery life. That gives ARM's [Advanced RISK Machine] architecture, which is known for its power efficiency, a very good opportunity." (See more: Report: Apple May Drop Intel Chips.)

This could spell trouble for 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. Apple is also reportedly gearing up to develop its own semiconductors that can meld touch, fingerprint and display driver tasks. When Apple announced the iPhone 8 and the iPhone X at an event in Sep. 2017, 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.

MSFT and AMZN also in the ARM chip business

What’s more, 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 in May 2017. (See also: Did Apple Poach a Qualcomm Engineer to Develop Chips In-House?)  

The iPhone maker isn’t the only one that is looking to lessen its reliance on Intel. Back in March 2017, Microsoft Corp. (MSFT) said it was 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.

Since Jan. 2016, Amazon has also been selling its own ARM chips, via an Israel-based company it owns, Annapurna labs. 

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