I really think this article fails to make its point about what exactly intel stands to gain from say, manufacturing processors for Apple. It trades in its major competitive advantage, advanced processes (dispite the propaganda intel is far from out of the game process advantage wise) coupled tightly with its processor designs that ensure margins that would make most companies blush, for low margin hypercompetitive contract work.
Intel is under absolutely no real threat of being unseated as the company that powers virtually every server in existence, throwing that away to chase contract mfging work dosent make any sense, even if some other companies do it well. The arguement it makes would be more like intel going back into DRAM production, and abandoning x86.
> throwing that away to chase contract mfging work dosent make any sense
It wouldn't be throwing anything away. Intel Fabs could still make Intel Design's Xeons same as always. It could just make everyone else's stuff as well as capacity and economics permitted. Why would you leave that on the table?
The best example is perhaps Samsung. Not only do Samsung's fabs make all the chips for samsung phones, they make them for others as well, including up until recently even their deadly competitor Apple! If you've got fabs, why wouldn't you do that? Even if Ryzen totally destroys intel on the desktop it's heads I win, tails you lose.
Intel’s advantage was built on scale. They could build more which meant they could invest more which meant they could build better and build more. By leaving scaling opportunity on the table, TSMC can now build more which means they’re investing more and oh no they just passed Intel.
You've got your eyes on the wrong ball, Intel the fab company will be competing for those contracts, but Intel the chip design company will be free to innovate without the burden of manufacturing.
> Intel is under absolutely no real threat of being unseated as the company that powers virtually every server in existence, throwing that away to chase contract mfging work dosent make any sense, even if some other companies do it well.
The future of their networking division might be brighter than the server one, because decentralization (abstraction layers on top of interconnected devices) is counter to the demand of servers and hardware powering current cloud tech.
The servers will move into peoples pockets or iot devices with increased decentralization.
Intel had the capability to be the only game in town when it comes to latest gen chips. If Intel was an open shop that anyone could order anything no one would bother with second and third players because the facility costs are so astronomical. Chip manufacture is by it's nature a natural monopoly.
Intel is under absolutely no real threat of being unseated as the company that powers virtually every server in existence, throwing that away to chase contract mfging work dosent make any sense, even if some other companies do it well. The arguement it makes would be more like intel going back into DRAM production, and abandoning x86.