Seems Intel senses the way the semi market has shifted. In the early days of computers it made a lot of sense to co-develop IP and fabrication techniques, espe

Seems Intel senses the way the semi market has shifted. In the early days of computers it made a lot of sense to co-develop IP and fabrication techniques, especially for CPUs. CPU IP was a way to move up the value chain and capture more $, and CPU IP had huge lock-in. Nowadays better tooling makes it easier to develop chips, better software reduces architecture lock-in, and it's all about mass customization (of IP blocks) for thousands of specific use cases as the market has opened up and chips are in everything. The value chain has shifted and its more important to differentiate on fabrication than it is on IP. In the short run x86 is a cash cow, but in the long run it steals focus away from pursuing the more optimal pure play foundry approach. Intel's main risk is being the worst of both worlds - less attractive IP and less attractive fabrication. Since chips are so important there's also geopolitical considerations at play. If you want to build a semiconductor ecosystem in a region (like the US), you need contract foundries. If you just have Intel puttering along making their own stuff and ignoring others, you get a bunch of local chip designers having to outsource manufacturing, which creates supply chain risk. I imagine as Intel shifts it will get favorable treatment by US Gov't in the way TSMC does from Taiwanese Gov't.