Fundamentally Intel in the foundry business suffers from a major problem.. if their customers can design a chip that they can buy for $50-100 when Intel would n

Fundamentally Intel in the foundry business suffers from a major problem.. if their customers can design a chip that they can buy for $50-100 when Intel would normally sell them a similar-ish chip for $1000 then they’ve basically just screwed themselves.. like if Amazon says we want to have you build our ARM graviton chip with 128 cores on it, the Intel MBAs would say “well wait we sell 128 core xeons for 10k each.. we should charge Amazon $9k for that chip”.. but as a foundry the silicon area is probably more like a $100-200 chip. So you might say the ARM business was not even something Intel would touch anyway so it’s all additive business, but ultimately if a large segment of their Xeon sales turn into high core count ARM customer designed asics then it eventually hurts them.