Intel Corp (INTC)

[ibc]

Margins: You seem to ignore two of my statements: Gross margins of existing products increase when fabs are paid by more chips due to higher utilization. Second, Intel can charge a nice premium to the already high +50% gross margin of TSMC

I understand that margins are a function of utilization. My point is that margins would be even higher with x86-only products taking up that utilization since the opportunity cost of doing non-x86 foundry is very high.

So, you and I agree that x86 can't fill the volume. Why not build fewer fabs and reduce your risk of capacity forecasting for external customers?