Intel Corp (INTC)

[Elmer Phud]

They get leading edge processor technology.

No, they get a under performing, power consuming design struggling to keep from falling further behind. That second rate design has an oversized die and is manufactured on a second rate, low yielding and more expensive process which is also struggling to keep from falling further behind. It will now be run in a fab that will have to compromise by running multiple designs from multiple companies, all wanting a special tweak but no one getting what they really want or need. It will be nursed by engineering teams which must now support multiple customers instead of being able to concentrate on one. Then they will compete with Asian fabs that have lower labor costs and have been doing this for years and have the system worked out. Not a recipe for success.