Intel Corp (INTC)

[Unkwn]

Yes please go and do the maths. If you produce chips you need a margin for profits and future development. That requirement doesn't disappear whether or not the chips are manufactured within Intel or outside. The only advantage worth talking about for Intel's fabs is quantity being manufactured and Intel would increase the quantity going through its fabs and reduce that going through TSMC by having it inhouse. Extra quantity can improve the margins.

Well, Intel is the only player in that business who can afford to sell its mobile chips at wafer cost and still benefit from it through reduced costs for their cash cows, server and PC processors. TSMC, Qualcomm and even Samsung are very far from this. In addition, Intel doesn't have to pay royalties to ARM, Imagination and the likes. None of its competitors has even remotely that cost position.

But, and that's also very clear, they are screwing it up with non competitive designs, with a degree of integration which is far too low and no competitiveness in the high end. That's what is holding them still back. Once they fixed it, nobody can win a price war against Intel - no chance.